How Volkswagen tried to conquer the skies – and crashed back to reality

Volkswagen launched a secretive Chinese project in 2019 to develop an electric flying car, but faced technical, legal, and competitive challenges from Chinese firms. The venture was shut down in 2024, and the company refocused on its core business.

Volkswagen, the German automaker, launched a relatively secret project in 2019 to develop an electric flying car, aiming to lead the urban air mobility revolution. The initiative was run by a small innovation team in Beijing, based on the belief that the future of transportation lies in the air. Volkswagen built prototypes, including a model called "Flying Tiger" and a more luxurious version named "Sky Garden," which was presented to senior Chinese officials and company executives. However, the company struggled to find suitable partners, switched suppliers, repeatedly changed designs, and faced complex engineering problems. One partner even accused Volkswagen of misappropriating trade secrets, leading to prolonged legal proceedings and a criminal investigation against the project manager in China. Meanwhile, Chinese companies advanced rapidly and established a significant advantage in the field. In the summer of 2024, Volkswagen's management in China decided to halt the project and refocus on the company's core business, at a time when its sales in China continued to weaken. The decision illustrated how legacy automakers struggle to keep pace with China's innovation, which has become a global power in low-altitude civil aviation as well.