The “flying car” market continues to draw more competitors. On Tuesday, automaking giants Fiat Chrysler Automobiles (FCAU) and General Motors (GM) announced they will enter the air-mobility sector.

Fiat Chrysler said it has entered into an agreement with Archer to help accelerate its electric vertical takeoff and landing (eVTOL) aircraft’s time to market.

Through the partnership, Archer will have access to Fiat Chrysler’s low-cost supply chain, advanced composite material capabilities, and engineering and design experience. The companies will also work together to reduce the cost of production, allowing Archer to “bring affordably priced service to customers” through the eVTOL.

“Electrification within the transportation sector whether on roads or in the air is the future and with any new and rapidly developing technology, scale is important,” Doug Ostermann, vice president and head of global business development at FCA, said in a statement. “Our partnership with Archer has mutual benefits and will enable innovative, environmentally friendly transportation solutions to be brought to market at an accelerated pace.”

The goal of Archer’s eVTOL is to move people throughout the world’s cities in a “quick, safe, sustainable, and cost-effective manner,” Fiat Chrysler said. It will be a high-volume, composite, 100% electric aircraft that is expected to begin production in 2023.

The aircraft will be capable of traveling distances of up to 60 miles at 150 mph.

While Fiat Chrysler has teamed up with Archer on an eVTOL, this is not the companies first collaboration together. FCA has already designed the cockpit elements of Archer’s first aircraft, which is anticipated to be unveiled in early 2021.

General Motors could be a key player in the sector. GM announced their intentions at the all-virtual Consumer Electronics Show 2021, where the automaker released its BrightDrop commercial business unit – a division that will include a full lineup of electric vehicles, including the new EV600 electric van, and a series of electric products.

GM said its venture into personal air mobility vehicles would include an autonomous shuttle and an eVTOL aircraft, CNBC noted. GM said the flying vehicle would be designed to carry one passenger and travel about 56 mph between rooftops and other urban destinations, according to the news outlet.

GM’s Vice President of Global Design Michael Simcoe said at the event that electric-vehicle concepts would reflect “the needs and wants of the passengers at a particular moment in time and GM’s vision of the future of transportation.”

“This is a special moment for General Motors as we reimagine the future of personal transportation for the next five years and beyond," Simcoe said.

The air-mobility market is estimated to be worth $1.5 trillion by 2040, according to Morgan Stanley. In August, a Toyota-backed startup successfully piloted a test flight. Tesla CEO Elon Musk has long talked of flying cars for the electric car company through his other company, SpaceX.

Shares of Fiat Chrysler were trading at $17.90 as of 12:55 p.m. ET, up 27 cents, or 1.56%. Shares of GM were trading at $47.72, gaining $2.72, or 6.03%.

1 (1) Archer Taps FCA’s Scale and Expertise to Accelerate Electric Vertical Take Off and Landing Aircraft (eVTOL) Production Photo: Archer