After facing insolvency and threatening closure, the Munich-based air taxi manufacturer Lilium has found unexpected relief with the acquisition from Mobile Uplift Corporation. This development marks a significant turnaround for the company, which had informed its employees just days before Christmas of their layoffs and impending shutdown.
On December 20, 2024, Lilium’s management had delivered the devastating news to its 1,000 employees. But on Christmas Eve, approximately 750 of those workers learned they would have their jobs reinstated, thanks to the urgent negotiations with the newly formed Mobile Uplift Corporation GmbH. Klaus Roewe, the CEO of Lilium, celebrated the signing of the investment agreement with the experienced investor consortium, citing it as “a Christmas miracle.”
The consortium behind Mobile Uplift includes European, North American, and German investors, led by Philipp Schoeller, who has experience as the founder of General Capital Group. Details of the acquisitions remain somewhat nebulous, but Schoeller has made strides through his career, particularly in restructuring and revitalizing distressed companies.
Lilium has worked on developing eVTOL aircraft, with hopes of establishing air taxis for urban transport. This ambition has encountered numerous hurdles, primarily due to financial constraints. Earlier this year, the company had amassed nearly 1.5 billion euros from investors including tech giant Tencent. Despite this support, the operational issues led to the declaration of insolvency, with many doubting Lilium’s viability.
The company's transition to Mobile Uplift marks the takeover of Lilium’s two subsidiaries focusing on their patented technologies and machinery. Despite this hopeful development, the parent company's insolvency leaves previous investors empty-handed, and many key leadership figures have already departed.
Prof. Dr. Gerrit Hölzle, associated with the insolvency process, stated, “The restructuring plan must align all stakeholders to secure the future of Lilium.” The consortium’s investment proposal has been approved by Lilium’s creditor committee and is expected to finalize by early January 2025.
A major focus for the newly rejuvenated Lilium is restoring trust with its employees, customers, and suppliers. Roewe emphasized, “We must rebuild confidence; there's much persuasion needed.” The vision includes resuming operations smoothly, especially as preparations for the first manned flight of the Lilium Jet are already underway, with targets set for initially testing the aircraft next year.
Historically, Lilium’s electric aircraft, the Lilium Jet, is aimed at short-distance travel, showcasing vertical takeoff and landing capabilities. Currently, more than 100 firm orders are on the books, along with around 600 expressions of interest from potential customers.
With the new investment, Lilium now faces the monumental task of revamping its infrastructure and securing the necessary certifications for the Lilium Jet. The aviation sector has rigorous standards, and competing interests have also emerged, particularly from rivals like Joby Aviation and Volocopter, which are both angling for market share within the growing eVTOL sector.
Looking forward, there’s cautious optimism about the partnership with Lufthansa, where both companies previously signed a memorandum of agreement to investigate the potential use cases for eVTOL services. The prospect of integrating Lilium’s aircraft within established air traffic networks could provide substantial opportunities for growth and service expansion.
Despite the promising signs from the acquisition and the reinstatement of jobs, several uncertainties linger. Chief Operations Officer Yves Yemsi is among key management figures stepping down, raising concerns about continuity and strategic direction.
The financial model for the future remains delicate, necessitating not only adequate funding but also market confidence to rediscover operational stability. Previous financial forecasts projected Lilium would achieve commercial operations as early as 2024, targets which have since been pushed back amid mounting challenges.
Klaus Roewe expressed gratitude to the team for their resilience through this turbulent time, noting their efforts to seek new investors following the insolvency filing last October. The latest acquisitions and capital inflow provide the opportunity to reconstruct Lilium and keep it at the forefront of urban air mobility.
For now, the future of Lilium is under scrutiny. Will the new consortium stand the test? The upcoming months will reveal if Lilium can transition smoothly from survival mode to sustainable growth, fulfilling its ambitious vision of revolutionizing urban transportation with its innovative air taxi solutions.
