Stellantis to build US firm Archer's air taxi, up stake

Carmaker Stellantis will help build Archer Aviation's electric aircraft and increase its stake in the US company, the two firms said on Wednesday, driving Archer's shares up nearly 17%. Industrial firms and new startups are flocking to invest in air taxis, which can take off and land vertically to ferry travellers to airports or on short trips between cities, allowing them to beat traffic. The vertical take-off and landing Midnight aircraft, which can carry four passengers and a pilot with a range of 161 kms, will be manufactured in Covington, Georgia, from 2024, with a production target of 2,300 aircraft annually, Archer and Stellantis said in a joint statement. It is designed for back-to-back short distance trips of around 20 miles, with a charging time of approximately 10 minutes in-between. "The goal is for Stellantis to mass produce Archer’s eVTOL aircraft as its exclusive contract manufacturer," the companies said. Stellantis, created from the merger of Fiat Chrysler and France's Peugeot, will provide up to $150m in equity capital for potential draw by Archer at its discretion in 2023 and 2024, subject to achievement of certain business milestones. Stellantis will also increase its existing stake in Archer through stock purchases in the open market, though its CEO Carlos Tavares said it wanted to keep a minority holding.<br/>