Air-taxi maker Archer accuses rival Joby of illegal China ties

By Shubham Kalia and Dan Catchpole

March 9 (Reuters) – Electric air-taxi maker Archer Aviation accused rival Joby Aviation in a countersuit filed Monday of defrauding the U.S. government and hiding close ties to China that it used to gain an unfair competitive advantage.

In the countersuit filed in U.S. federal court, Archer said that “Joby and/or its agents fraudulently misclassified thousands of pounds of Chinese-origin aircraft materials as consumer goods … in an apparent effort to evade U.S. tariffs and foreign-influence oversight.”

Joby Aviation sued Archer in a California state court in November last year for allegedly stealing its trade secrets, saying that Archer hired away a Joby employee who took confidential information to Archer about its business strategies, partnership terms and aircraft specifications. The case was moved to U.S. district court in December.

Alex Spiro, an attorney for Joby, said the company “doesn’t respond to nonsense.”

“Archer’s constant legal issues and flailing business operations have left it no choice but to resort to invented nonsensical theories,” he said in a statement. “We will see them in court.”

Archer alleged in its countersuit that Joby received grants and financial benefits from the Chinese government and “demonstrating a profound, undisclosed foreign dependency.” 

It also accused Joby of “wrapping itself in the American flag,” rather than disclosing its ties to Beijing, which have given it an unfair competitive edge over its rival. 

“The United States is in a global race with China to lead the future of aviation,” Archer’s Chief Strategy and Legal Officer Eric Lentell told Reuters.

“While Joby promotes a made-in-America, vertical integration narrative and benefits from U.S. taxpayer-backed programs, our filing lays out detailed allegations exposing Joby’s longstanding and extensive ties to China. We brought this action to ensure accountability, restore fair competition, and safeguard the strategic future of American advanced aviation.”

The countersuit was filed the same day that the U.S. Department of Transportation announced eight pilot programs to spur development of air taxis and drones. Three of the eight list both Joby and Archer as participants. 

President Donald Trump created the programs last year in an effort to catch up with China in drone and air mobility development. 

Electric vertical takeoff and landing aircraft firms like Joby and Archer are racing to certify and deploy their competing vehicles and meet demand for faster, more sustainable urban transportation.

(Reporting by Shubham Kalia in Bengaluru and Dan Catchpole in Seattle; Editing by Stephen Coates)