Berlin, March 13,(V7N) – In a significant development for the struggling electric aviation sector, German flying taxi firm Volocopter, which had filed for insolvency, is set to be acquired by Chinese vehicle parts manufacturer Zhejiang Wanfeng Auto Wheel Co.

This acquisition comes just weeks after another German competitor, Lilium, collapsed, highlighting the financial challenges facing the nascent industry. The Chinese firm has placed a purchase price of 10 million euros ($10.9 million) on the transaction, a stark contrast to Volocopter's book value of approximately 42 million euros.

Volocopter, founded in 2011, aimed to launch its two-seater electric aircraft, the "Volocity," by 2025. However, the company faced a major setback when it was forced to cancel planned test flights at the 2024 Paris Olympics due to delays in engine certification by the European Union Aviation Safety Agency.

Zhejiang Wanfeng Auto Wheel announced in a statement that it will acquire Volocopter's assets, intellectual property rights, and assume its contractual obligations under the Volocopter GmbH name.

The acquisition raises concerns about Germany's support for cutting-edge technology companies, particularly as they face increasing competition from international rivals. Volocopter CEO Dirk Hoke had previously emphasized the need for state support in such capital-intensive and technologically complex sectors.

The financial woes of Volocopter follow Lilium's recent return to bankruptcy proceedings after a failed rescue attempt. Lilium had also sought emergency funding from the German government last year but was unsuccessful.

The acquisition of Volocopter by a Chinese company for a significantly reduced price is expected to fuel further debate about the future of Germany's technological innovation and competitiveness.

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