At a time when factory closures are increasing, the Lilium project was very well received in France at the start of the year. “The leaders were really impressed by the welcome they received, by the way the French opened the doors to them», slips this same executive of the company. Stake ? An investment of 400 million euros, capable of generating some 850 direct jobs. And which would reinforce the current German site, based in Wessling, in the southern suburbs of Munich. The only certainty at this stage: if the Lilium factory sees the light of day in France, it will be located in Occitanie and not in New Aquitaine as initially imagined, according to this same interlocutor.
Certification at your fingertips
However, Lilium found itself in a delicate situation and had to call on the KPMG firm to find a solution. And this even as the young company was getting ready to reach its goal. After years of development, which required an investment of around 1.4 billion euros, the company is beginning the industrialization phase of its aircraft, the Lilium Jet, capable of transporting between four and six passengers. But is now running out of cash. Even though the company is counting on type certification – with the European Union Aviation Safety Agency (EASA) – in 2026 and entry into service immediately. To date, it has nearly 780 orders and purchasing intentions. In 2023, the company still managed to raise 292 million euros, partly thanks to the Chinese Tencent (owner of 23% of its capital).
How can we explain that she stumbles at this point? Lilium was unable to access a loan it was counting on at short notice. “We have had discussions with the German government to obtain a loan of 100 million euroswe explain at Lilium. The money from the German investment bank was allegedly guaranteed 50% by the Berlin government and 50% by the Bavarian government. Both had accepted.” But it is at the level of Parliament, which must approve this type of expenditure, that the loan was refused on October 17. “The Social Democrats and Liberals agreed, but the Greens did not», Continues this same source. According to him, the cause is political quarrels rather than ecological considerations.
Employees still paid
Result: Lilium leaders say they are victims of collateral damage from political conflicts. Which caused them to lose the 100 million euros that the company urgently needed, as well as 120 million euros from private investors who conditioned their aid on public investment. “Until October 17, we thought we would get 220 million eurossummarizes the Lilium framework. And on October 17, we learned that it was zero.» For the moment, however, Lilium is not at a standstill. The parent company, Lilium NV, filed for insolvency and requested self-administration for its German subsidiary Lilium GmbH, granted by the local court in Weilheim.
«Right now, the business continues to operate, even if it is in a slightly reduced mode, not at full capacityspecifies the company’s contact. We continue to make significant progress, for example in the area of testing. And in mid-November, we installed the complete fuselage of the Lilium Jet on a ground test stand.» For now, the approximately 1,100 employees are guaranteed to be paid until the end of the year, with salaries now being covered by the federal employment agency. On the supplier side, however, which was defined at 97%, Lilium is no longer able to pay them. While some have the resources to maintain the supply of parts, others have interrupted them. The first flight scheduled for early 2025 of one of the two aircraft now risks being postponed.
Save the project at all costs
Between more expensive development than expected and massive hiring, Lilium now finds itself up against the wall. Certainly, the company can boast indisputable technical expertise thanks in particular to the presence on its board of directors of Tom Enders (the former boss of Airbus), Henri Courpron (also from the ranks of Airbus ) and, in the operational management team, former executives from Rolls-Royce, Honeywell and the European aircraft manufacturer. The current boss, Klaus Roewe, was director of the Airbus A320 program. But its strategy of developing a machine as quickly as possible to limit development costs is faltering. In addition, the company would have received hundreds of millions of euros less than its most direct competitor, the American Joby.
The future of Lilium is therefore very uncertain, while two devices are already being assembled. “An investor could invest in the parent company and keep the old structureemits the Lilium frame. Another possibility would be for an actor to invest directly in the German entity and save the company. An investor could also simply purchase certain assets.» And added: “We wish to continue production of Lilium Jet, because the machine is very advanced in its manufacturing process, but the first flight which was to take place in 2025 could also be delayed“. The company would need around 300 million additional euros for next year. Lilium’s managers are seeking new investors by all means to save their project at all costs.
Source: www.usinenouvelle.com
