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

While most of the world was focused on electric cars, Volkswagen was already looking at the next stage. In 2019, the company launched a relatively secret project to develop an electric flying car, intended to allow wealthy individuals to fly between major cities in China in a quiet, fast, and luxurious aircraft. The venture was managed by a small innovation team in Beijing, based on the concept that the future of transportation lies in the air and not just on the road.

However, the ambitious vision collided with reality. Volkswagen struggled to find suitable partners, changed suppliers, altered designs repeatedly, and had to deal with complex engineering problems. One of the partners even accused the company of violating trade secrets, which led to lengthy legal proceedings and even a criminal investigation against the project manager in China. At the same time, Chinese companies continued to advance rapidly and establish a significant advantage in the field.

Despite the difficulties, the project continued to develop. Volkswagen built several prototypes, including a model called "Flying Tiger" and later a more luxurious model called "Sky Garden," which was even presented to senior officials in the Chinese government and transferred to Germany for presentation to the company's management. However, within Volkswagen, concerns grew: the long time until profitability, the high costs, and the realization that Chinese competitors had already overtaken it raised heavy questions regarding business viability.

In the summer of 2024, the final decision was made. Volkswagen's management in China chose to stop the venture and return the focus to the company's core business, precisely at a time when its sales in the country continued to weaken. The decision symbolized more than just the closing of one project — it illustrated how veteran car manufacturers struggle to keep up with the pace of innovation in China, which has become, within a few years, a global power also in the field of low-altitude civil aviation.

The story of Volkswagen is a reminder that even giant corporations with decades of experience are not immune to market changes. While the German company was forced to give up on the dream of the flying car, Chinese companies are already preparing for the commercial production of electric aircraft in the coming years. The race to the skies is still ongoing — but at least at this stage, it seems that China has opened a significant gap over the veteran competitors.