Archer and Fiat Chrysler Automobiles (FCA) announced that they have entered into a definitive agreement to enable Archer to benefit from access to FCA’s low-cost supply chain, advanced composite material capabilities, and engineering and design experience.
California-based Archer is creating the world’s first all-electric airline that moves people throughout the world’s cities in a quick, safe, sustainable, and cost-effective manner. The new partnership will help accelerate Archer’s timeline in becoming an industry leader with the resources and capabilities to capitalize on the new era of sustainable air mobility, a market that Morgan Stanley estimates will be $1.5 trillion by 2040. Last May, Archer emerged from ‘stealth mode’ and announced its plan to deliver a sustainable and efficient vehicle with the financial support of investors including Walmart eCommerce CEO Marc Lore.
Archer will manufacture high-volume, composite, electric vertical takeoff and landing (eVTOL) aircraft, with the intent of starting production in 2023. FCA, the parent company of established automobile brands including Chrysler, Dodge, Jeep, and Ram, has already collaborated on cockpit design elements of Archer’s first aircraft which is expected to be unveiled in early 2021. The 100% electric aircraft will be capable of traveling distances of up to 60 miles at 150 mph. Through this announced collaboration, the companies will work together to significantly decrease the cost of production, enabling Archer to bring affordably priced services to customers via its ultra-quiet, high-performance eVTOL aircraft.
“We’ve been hyper-focused on a customer-first approach to vehicle design and aircraft operations,” said Brett Adcock, Co-Founder & Co-CEO of Archer. “Now we are working with a seasoned, industry-leading automotive partner to leverage cost benefits and experience that will allow Archer to produce thousands of aircraft reliably and affordably every single year.”
“Electrification within the transportation sector, whether on roads or in the air is the future and with any new and rapidly developing technology, scale is important,” said Doug Ostermann, Vice President and Head of Global Business Development of FCA. “Our partnership with Archer has mutual benefits and will enable innovative, environmentally friendly transportation solutions to be brought to market at an accelerated pace.”
“We are excited to team up with one of the world’s largest automotive companies on our mission of advancing the benefits of sustainable air mobility” said Adam Goldstein, Co-Founder & Co-CEO of Archer. “This is a first-of-its-kind deal for one of Detroit’s Big Three auto makers in moving into the Urban Air Mobility space. There is now a clear path for Archer to bring mass production to this industry, changing the way people travel in and around cities forever.”
Why it’s important: Archer’s partnership with one of the world’s largest car manufacturers is expected to assist the startup in lowering its purchasing costs and accelerating the launch of its eVTOL air taxi. FCA’s expertise and established supply chain will also enable the two companies to minimize the cost of manufacturing, making high-volume manufacturing achievable and sustainable.