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Maricarmen Abascal has died. She was the evicted Spanish 80-year-old who was at the heart of Spain’s housing protests.
The tenants' union in Madrid announced on Wednesday that Maricarmen Abacal, the 87-year old woman whose eviction had sparked protests over housing conditions in Spain, was dead. Abascal’s?eviction has sparked protests in Spain over the last couple of weeks. This included activists camping out on one of Madrid’s main squares and calls for action to tackle a growing housing crisis. These protests, along with the rejection by parliament of last week's decrees intended to?limit evictions?and limit rent pressures?, led Prime Minister Pedro Sanchez?to call for an early election on?November 29, Sanchez wants to change the narrative of the political debate from the handling of the migrant crisis by his government in Spain's North African Enclave Ceuta, and the corruption cases involving the Socialist Party of Spain and his family. He is now focusing on the housing crisis. Angel Victor Torres is Spain's Minister of Territorial Policy. He lamented this news. He said that Maricarmen was a symbol for what many families were going through, both elderly and young, who struggled to get their own home or stay there.
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US ends review of data privacy for US Airlines without Penalties
According to a memo seen on Monday, the US 'Transportation Department' has concluded a review conducted during Biden's tenure of?airlines? data privacy practices without imposing any penalties. This is despite complaints from lawmakers that carriers had failed to safeguard or misuse information. USDOT did not comment on Monday but in a memo dated 4 September, it said that they had evaluated the privacy of data for the 10 largest airlines and found "no violation" of the applicable laws or policies. In?March 2024, the then-Transportation Secretary Pete Buttigieg opened a review on how US Airlines collect and use passengers' information. Senator Ron 'Wyden has urged USDOT addressing privacy concerns. "DOT claims that merely having a policy and training on privacy is enough, despite evidence of privacy violations." Wyden and Shontel brown said in August that the Drug Enforcement Administration was paying airline employees Millions of dollars were spent to get some data on 'Americans. They alleged that a database owned jointly by major US airlines sold passenger records without warrants and court oversight to government agencies such as the IRS. In a memo, the department said that US airlines shouldn't set pricing based on personal data. It reminded airlines that they have a responsibility to "protect?passenger?data, adhere?to published privacy policies and prevent unlawful discrimination when it comes to dynamic pricing practices." Sean Duffy, Transportation Secretary, said last year that he would investigate any personalized pricing. Delta Air Lines denied using AI to set individual prices.
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Manishi Raymondchaudhuri: The thaw in the Sino-Indian relationship will be a major test for economic growth
India wants to move out of China's shadow and improve diplomatic relations. But the more it pushes the more its dependency on China, its wealthier neighbor, becomes apparent. Xi Jinping, the Chinese president, and Indian prime minister Narendra Modi met in New Delhi in December. It was Xi's very first trip to India in seven years. Both leaders agreed to repair the damage caused by the deadly hand-to -hand clashes that occurred in 2020 along their shared, but poorly defined Himalayan border. Since the two Asian giants agreed last year to end their military standoff, there are other signs of warming relations. Since the COVID-19 epidemic in 2020, direct flights between Indian cities and Chinese 'cities' have been resumed. Visa services in China are also expanding. These measures are only a first step. Handshakes and plane rides will not solve the problem of long-standing trade dependency and strategic distrust. The economic relationship between the two Asian giants remains profoundly asymmetric. According to the World Bank, China's share in global manufacturing value added was 28% by 2025. This is far greater than India's 3%. India's export situation is also lopsided. China's 16.3% of global merchandise exports by 2025 will be a massively greater share than India's 1.7%. India will import goods from China worth $116 billion dollars more than it exports in 2025. In August of this year, India's deficit was already at $91 billion. It was on course to surpass the record set last year. CAPTIVE SUPPLY CHAINS It's not just that India imports from China more. Many of these imports are essential to Indian industry. The three largest import categories are electrical and electronic equipment (EEE), machinery and chemicals. These goods are used as intermediates by Indian manufacturers. India imports more from China the more it exports. The dilemma is illustrated by smartphones and generic drugs. India has made great progress in expanding pharmaceutical production and assembling electronic devices, but many of the inputs and components needed by both sectors are still sourced from China. This dependence has broad strategic implications. Beijing's introduction of export licensing requirements for seven heavy rare Earths in April 2025, exposed India's automotive manufacturing and defense sectors to vulnerabilities. India's manufacturing problems are not all due to foreign competition. According to the latest Economic Survey, India's R&D spending in 2024 was just 0.64%, which is significantly lower than its?Asian counterparts, partly due to private sector underinvestment. The problem is compounded by the shortage of skilled workers. Foxconn's decision to withdraw Chinese staff from their Indian iPhone factories by 2025 showed how advanced manufacturing is dependent on foreign expertise. INDIA'S FIXES New Delhi is trying to correct the imbalance. India has recently eased restrictions on Chinese foreign direct investments (FDI), allowing them to own up to 10% of Indian companies. The government announced simultaneously that it would expedite the clearance of investment proposals within 60 days in five high-tech areas, provided they were structured as joint ventures and had majority Indian ownership. India's exports to China increased by 40% from April to August. The increase in exports is largely due to industrial machinery, automotive components and printed circuit boards as well as smartphones and other electronic products. The export boom should not be misinterpreted as a fundamental change in the relationship. India's electronic growth is still heavily dependent on Chinese imports. Smartphone manufacturing, India's largest export success story, is still only 18-20% local. The AI boom in Northeast Asia is generating positive spillovers to the subcontinent. Indian firms are picking up sub-components from Chinese tech giants who are facing a surge in hardware demand. This dynamic, however, reinforces the importance of Chinese supply chains. TRUST DEFICIT IS PERSISENT In order for China-bound FDI to reach India and for technology transfer to take place, it is important to answer the question: What does India have to offer? China is not taking up the bait. The obvious answer to this question is 'access to a large, young market with a low-cost labor pool'. Also, New Delhi has various incentives for industrial growth, including tax breaks, payouts linked to production, and capital subsidies. China's pressure to its leading companies, which includes EVs, batteries and solar energy equipment as well as electronic equipment, shows how Beijing protects its most sophisticated capabilities. The 3,800 km (2,400 miles) of disputed border in Himalayas continue to cast a cloud over the relationship. The two countries have agreed to a gradual, multi-year stabilisation plan. Diplomats met in Beijing last August and pledged a "fair settlement that is reasonable for both parties". However, there does not appear to be a resolution imminent. Both governments seem willing to expand economic cooperation for the time being. India's challenge does not just lie in reducing its imports from China. The challenge for India is to use a renewed engagement with China to develop its own domestic capabilities. The relationship between Asia's largest economies until then will be a one-sided affair. You like this column? Open Interest (ROI) is your new essential source of global financial commentary. Follow ROI on LinkedIn and X. Listen to the Morning Bid podcast daily on Apple, Spotify or the app. Subscribe to the Morning Bid podcast and hear journalists discussing the latest news in finance and markets seven days a weeks.
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Alaska LNG savings justify billions of investment, developer claims
Alaska LNG's developer claimed that the project would be competitive with US Gulf Coast competitors because it will have access to stranded natural gas and shorter shipping routes into Asia. This is despite some analysts' concerns about the massive infrastructure costs of 'the project. Tim Fitzpatrick said in an email sent to the project developer Glenfarne on Sunday that the cost to ship gas from Alaska's North Slope to Asia would be at least 60% cheaper than the Gulf Coast. The project would transport gas from Alaska's north slope through an 800-mile pipeline, to a plant that exports liquefied gas in southern Alaska. The question is whether the lower shipping costs are worth the billions needed to build infrastructure. The estimated cost for the project is $44,5 billion to $54,5 billion. This translates into?roughly $2 billion to $2.7 million per million tons of LNG capacity (MTPA). This is significantly more than other Gulf Coast projects that have recently been approved. The developer Glenfarne claims that this comparison is inaccurate because it does not include the costs of the pipelines and treatment infrastructure required to bring the North Slope gas stranded to the market. Fitzpatrick stated that the delivery costs for the?Alaska Liquefied Natural Gas project are about $1.4 billion each MTPA. Since the Russian invasion of Ukraine, US LNG projects have been approved at an average price of $1 billion or less per mtpa. Glenfarne says that the project's competitiveness is best measured in terms of delivered LNG costs, rather than upfront expenditure. Fitzpatrick stated that the company has so far identified customers for 13 millions tons of LNG per year and needs 16,000,000 tons per annum to support project finance. Trump said on Friday that South Korea would help finance the LNG project in Alaska as part of an investment package worth $200 billion for US projects. Seoul, however, quickly indicated that the role of South Korea in the Alaska LNG project was not yet determined.
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US FAA: Boeing 737 MAX software bug poses no safety concern
Federal Aviation Administration'said Friday that a panel of experts determined that a'software glitch in certain Boeing 737 MAX Flight Computers pose no safety concerns, clearing the?way for approval of a broader version?of a bestselling narrow body jet. This decision will remove a long-delayed obstacle to the certification of the MAX 10 – the largest variant in the 737 MAX Family – which had been delayed by years. This should ease the concerns of airlines who fly the MAX 7 which also uses the same software and was certified by FAA in august. The FAA stated that the decision by the Corrective action Review Board?that?met in Seattle on?Friday was based on "pilots retaining full control of?aircraft, and the indications given to the flight crew were clear and unambiguous." The FAA announced earlier this week that it would delay?certification for the MAX 10 until an analysis was completed of the software problem, which could prevent pilots?from?accessing automated guidance during a landing scenario. Aviation officials believe that the MAX 10 could now be certified by the end of this month. Southwest Airlines could have also been affected by the issue, as the MAX 7 aircraft that was just certified uses the same software. The MAX 10 was also ordered by Alaska Airlines, United Airlines, and other large airlines. Jefferies stated in a research report that the MAX '10 can be certified by the end of this year. Boeing has estimated nearly 1,500 MAX 10s are on order. The FAA stated that one software version could increase pilot workload when a pilot "aborts" a landing, then applies power and climbs for another 'landing attempt. A FAA official stated that Boeing would issue a bulletin on how to recognize the situation and what to do in it. The FAA will then issue a Special Information Bulletin about Airworthiness to US airlines and foreign regulators so they are aware of Boeing’s bulletin. While the analysis was in progress, major US airlines chose not to use this version of the software.
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Zimbabwean businessman Chivayo who was close to the ruling elite killed in helicopter crash
Wicknell 'Chivayo', his wife, and other victims were killed in a helicopter crash on Wednesday, according to Emmerson Mnangagwa. Mnangagwa said in a statement to X on Thursday he is "in deep grief and shock", and Kenyan President William Ruto, who posted a different post on the same day, called Chivayo a friend and expressed his sadness at his death. Chivayo, who has cultivated close relationships with Mnangagwa, and other African leaders by posting pictures on social media, also displayed luxury vehicles, designer clothes and lavish gifts. Zimbabwe's The Herald reported that investigations?into this crash are currently underway and a statement detailing the findings will be made in due course. The police did not comment on the cause of the accident, but Paul Nyathi, the spokesperson for the authorities said that DNA tests were being conducted because the bodies had been severely damaged. Chivayo was often cited by critics as an example for a small, elite class who benefited from contracts with the government under Zimbabwe's ZANUPF party. He denied accusations of corruption. Chivayo spent several years in prison after being convicted of money laundering in 2005. He was arrested for?the alleged misuse of a $5.6million advance payment linked to a solar energy project in 2018. But a magistrate struck off the 'case in 2023 citing delays by the prosecutors. Mnangagwa again attracted scrutiny in 2024 after describing his company as Starlink’s exclusive partner in Zimbabwe. This prompted the telecommunications regulator, to clarify that it was only one of many approved resellers.
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Israel's Netanyahu: Flydubai co-pilot underwent radical Islamist endoctrination
Israel's Prime Minister said that the co-pilot who attempted to crash a plane by stabbing the captain had been radicalized and clearly suicidal. The flydubai flight FZ1073, which flew from Dubai to Tel Aviv on Wednesday, was spared disaster after the injured captain managed to open the cockpit door and allow passengers to subdue their attacker. The plane with more than 170 passengers on board was landed at Tabuk Airport in Saudi Arabia by a reserve crew. We know that he was radicalized by islamists. In an interview with Fox News, Israeli Prime Minister Benjamin Netanyahu stated that this appears to be what we gather from his personal data. According to two Israeli security officials, Israel's initial assessment is that the copilot, who Israel identified as an Omani, likely acted alone. However, the investigation is still ongoing. Flightradar24, a flight tracking website, reports that the plane plunged more than 14,000 feet during the incident while it was flying from the United Arab Emirates towards Israel. Netanyahu said, "It was obvious that the copilot was suicidal." Netanyahu stated that it appeared likely that the man was planning to bring down the aircraft. He said that "the Islamist traits, the radicalization found in his past, is a pretty good clue." But again, I haven't made any final conclusions. "But that's what we know now," he said. The United Arab Emirates have begun investigations to determine the circumstances and motives, and to determine "whether or not the incident was linked to terrorist activities or purposes or involved any prior planning or directions", according to the UAE's state news agency. ATTACKER IDENTIFIED AN OMANI NATIONAL Yossi Shelley told the Israeli envoy in the UAE that it was still too early to make any conclusions and that no motive had yet been established. A second Israeli official stated that Israel did not receive all of the information requested from Saudi Arabia and that Israeli intelligence services Mossad, and Shin Bet were also investigating the incident. Saudi Arabia's media office has not responded to requests for comment immediately, nor have they made any statements about their investigations. Netanyahu identified the attacker's nationality as Omani. Omani authorities are yet to comment. We have restrictions that state that you cannot have pilots who are from countries without diplomatic relations with Israel. Netanyahu said that it was clear that he had been able to do so. In an interview with Fox News Netanyahu stated that the attacker is being investigated in Saudi Arabia, and that he believes he will be sent to the UAE. When asked if there were any signs of Iranian involvement in the conflict, Netanyahu replied that it was still too early to tell. Israel has not made any official statements about Iranian involvement. Two Israeli security officials claimed that Israel has not yet identified any Iranian involvement. Israel Defence Minister Israel Katz stated on Wednesday that Israel’s preliminary information indicated the co-pilot intended to crash the aircraft, describing him?as a terrorist. Netanyahu, however, only described it as "a serious incident". The permanent Iranian mission at Geneva has not responded to the request for comment. SECURITY FEARS AHEAD OF ISRAELI ELSTION Israel's security was a major issue in the campaigning for the first elections since the Hamas attacks of October 7, 2023. In February, the US and Israel launched attacks against Iran, in a conflict which quickly spread to the Gulf of Aden and Lebanon where Israel is fighting Iran-backed militant Hezbollah. Both Netanyahu and Indian PM Narendra Modi have described the captain of flight FZ1073, an Indian, Smit Machchhar, as a hero. The Indian Embassy in the UAE reported on X that the pilot was doing well. Israel also praised passengers who subdued the attacker. Yaniv Haun, one of those who incapacitated an attacker, described running to the cockpit when the plane nosedived. "We pulled out the assailant, I pulled out. "We took control after I got him out. I lifted the yoke, steering control, and straightened out the plane a little," he told reporters on his return to Israel.
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Canada fast tracks oil pipeline to diversify economy and divert away from US
Canada will speed up the approval process of a new proposed crude oil export pipeline that would run along its west coast. The project could generate over C$20 billion in GDP annually, according to Prime Minister Mark 'Carney. The pipeline announced in July is an important part of Carney’s plan to diversify the US economy and lessen the impact of President Donald Trump’s tariffs. Carney stated that Ottawa will officially list the Pacific Link Pipeline as a?project of national interest', allowing it to proceed through a single regulatory review process at the federal level. Ottawa, he said, aimed to finish the process by September 1, 2020. He told reporters at Fort McMurray in Alberta, the hub of the oil sands sector, that a pipeline to the West Coast was part of his mission to transform the economy and double non-U.S. imports within the next decade. Ottawa claims that the 1 million barrels a day project will create 140.000 jobs, generate more than C$20 billion per year in GDP and C$100 Billion in government revenues by 2060. Canada currently has just one east-west oil export pipeline in Canada, the 890,000-barrel-per-day Trans Mountain pipeline. The pipeline expansion was completed in 2024. However, it is already operating at full capacity. Since years, Canada exports more than 90% its crude oil to the United States through pipelines. A new oil export pipe could make Canada the world's largest energy supplier, as Asia’s top importing countries look for oil outside of the Middle East following the Iran conflict. Trans Mountain Corp, a government-owned company, will build the pipeline in conjunction with Pembina Pipeline Corp. Alberta estimates that it will cost between C$35,2 billion and C$43.7billion. The federal government will own the majority of the shares, followed by the government of Alberta. The federal government and the government?of Alberta will own a majority of the shares. Environmentalists and Indigenous groups have opposed previous oil pipeline projects across Canada. This has led to the cancellation of certain projects, and cost overruns or construction delays in others.
How Volkswagen's flying car dream crashed in China
Volkswagen, China's leading automaker for years, looked beyond the streets it dominated in 2019, and set out to take a piece of space.
VW had a vision of a battery powered airborne vehicle. The 82-year old manufacturer needed Chinese technology and design to make it a reality.
The German automaker wanted to work quickly with a startup team in Beijing in order to create a?flying car, a challenge that Porsche and Audi had failed to meet. VW was to deliver what they called a "luxury, futuristic drone" that could transport four rich passengers in style. It was intended to sell them vehicles that could fly between cities such as Beijing and Tianjin with a noise level half that of a helicopter. (Read the full story at?.com)
In a video for 2022 posted on the Volkswagen website, VW project leader Zhou Jin stated that this segment has a strong potential to be a major market segment.
Volkswagen is still grounded, even though local startups are preparing to launch flying cars in China. Volkswagen's flying car effort could not match China's low altitude economy. This is the aviation industry's term to describe an emerging market that includes drones, air-taxis and other aviation service aimed at airspace under 1,000 meters. Local rivals, government and supply chains have moved more quickly in China than VW. VW is a legacy company with a culture that values deliberation and compliance. VW's stumbling is another example of how older automakers are losing business rapidly to Chinese competitors.
The project's failure also highlights the shifting legal risks that foreign companies face in China. VW faced a 5-year legal battle with a Chinese partner who claimed that VW had violated trade secrets when developing flying cars. Western companies have accused Chinese firms for years of stealing their technology. There is also a criminal investigation into?Zhou, the Chinese manager who VW promoted as its face of innovation.
Emerson Xu is the CEO of NexAvian, and former China director of air-taxi manufacturer Volocopter. He said that Volkswagen's experience shows just how "brutally select" China's mobile industry has become. "If you are not Chinese enough, or faster, or both, then you will not stand a shot."
Volkswagen's spokesperson stated that the automaker would not comment publicly on its development of flying cars or the case brought against Zhou, its employee. The spokesperson stated that "we are convinced the allegations brought against us have no substance."
Zhou said, "I can't understand why I was left to deal with a criminal matter I was innocently involved in by simply carrying out my job duties." I have repeatedly asked the company to intervene and resolve the commercial dispute fully.
Volkswagen's battle to bring a flying vehicle to market, and how the company ended up killing the project in 2024, has never been reported before.
This report includes hundreds of pages from Volkswagen documents relating to its plans for flying cars, including planning papers, legal documents, and corporate communications. The reporters also interviewed five individuals with knowledge about the project and reviewed disclosures made by former VW partners regarding flying-car development. VW is still partnering with Chinese companies, such as automaker Xpeng to help with electric cars and Horizon Robotics for autonomous driving. The company has made such agreements because it has been losing sales and market share in the largest auto market to Chinese brands. VW's sales in China peaked in 2019 at 4.2m but dropped to 2.7m last year. This has pushed the automaker down to third position behind rivals BYD & Geely. VW's profits have been hammered by these struggles, as well as mounting pressure from its German manufacturing network and U.S. Tariff costs. In recent weeks, the company announced plans to cut vehicle models and up to 100,000 positions as it scrambled to stabilize its business.
Early, then overtaken
Volkswagen joined the rush of automakers to adopt electric vertical takeoff-and-landing (eVTOL). The term "flying cars" is often used by automakers to describe the new sector, alongside eVTOL.
The idea was simple. Electric flying cars would reduce travel times in crowded cities, and car manufacturers could reinvent themselves to investors as "mobility companies". Toyota, for instance, invested in Joby Aviation, an air taxi startup in New York that has recently tested air cabs. Porsche Consulting, a VW management-consulting arm, promoted an industry it estimated could be worth $32 billion by 2035. VW's Porsche brand partnered with U.S. aerospace giant Boeing, while Audi's sister brand teamed up with Europe's Airbus to develop flying cars. Both ventures failed to produce a product that was commercially viable, so Volkswagen executives turned their attention to China, the auto market in which they dominated at the time.
The market for flying cars was relatively open when VW started its China project in 2019. The race was tightening dramatically by the time the project closed in 2024. China's government made the "low altitude economy" a strategic national priority in those five years. This attracted a flood of local competitors.
According to CCID Consulting (a Chinese think tank affiliated with the Chinese government), at least seven Chinese firms are expected to provide eVTOL cars by the year 2026. Guangdong Province opened China's first flying car testing center in March.
Xpeng is a key partner in VW's China turnaround plan for the EV market. It has begun to deliver its own flying vehicle: a futuristic, extended-range EV or "mothership", built to launch a drone with two passengers from its cargo bay. In recent years, the eVTOL industry has seen many failures, as startups in Europe and America have filed for bankruptcy before launching a vehicle into commercial operation. The flying car concept has not been a sustainable business.
'ESTABLISHED LIFESTYLE ENJOYERS"
Volkswagen's original goal was to build a V.MO full-scale model in two years. VW's planning materials target wealthy Chinese individuals who are looking for exclusivity and status. Marketing and product plans indicate that the cabin would have to be big enough to accommodate four passengers with their luggage and include screens for entertainment.
The team consisted of fewer than ten members, led by Zhou (the 39-year old director of Volkswagen Beijing's innovation center). VW promoted the team in press releases and videos as a "young Chinese expert" who had "started at scratch." VW concluded that it needed a Chinese partnership because its local market "was ahead of European R&D," Zhou stated in a promotional film.
VW was unable to find a partner who could offer technical capabilities without the political risk associated with government ties, which one internal presentation warned would "trigger scrutiny beyond China."
Volkswagen considered working with EHang based in Guangzhou, China's only eVTOL startup that has listed shares. VW concluded that the company had a gap to close in order to meet VW standards for automotive engineering, according to an internal assessment from August 2020. EHang did not respond to a comment request.
Sichuan Tengden, a Chinese manufacturer of military drones, also resigned from consideration. The company cited "capacity constraints" that an internal VW memo linked to the “China-U.S. Arms Race." Tengden did not respond to a comment request.
VW's legal department also highlighted another risk associated with working with the firm: its role as a supplier of military equipment. Tengden is founded by a former employee of Aviation Industry Corporation of China, a state-run defence contractor that has been targeted by U.S. restrictions on trade because of its role developing killer drones. AVIC is the manufacturer of China's J-20 Stealth Fighter, as well as other major weapons.
Records reviewed by us show that VW instead approved a contract for AVIC General Huanan Aircraft Industry Company, AVIC GA, to provide consulting services on its flying vehicle. When the arrangement was signed in 2021, AVIC faced U.S. Export restrictions but wasn't a completely blocked entity.
AVIC did not respond to any questions regarding its involvement.
STAR WARS VIRTUALITY, "UNCONTROLABLE" RISKS
VW chose Pantuo Aviation - a Shanghai-based startup that had been operating for two years - to carry out a feasibility report on a flying luxury car that would bear the VW badge. Pantuo Aviation was owned by Zhang Qiong. Zhang Qiong is a Chinese entrepreneur with a successful business in supplying aviation fuel to private planes.
Two people have said that the design of the startup - an elegant craft with rotating wings – impressed Volkswagen managers. Pantala was a sleek craft that looked more like an aircraft than a Star Wars vessel.
Zhang Pantuo thought VW's team was full of imagination, but had no plan concrete for the future. She said, "At first they had absolutely nothing." They had never done it before.
Zhang said that VW approached the project with a traditional auto mindset. Zhang felt that while Pantuo viewed itself as developing an innovative, complex aircraft that required tolerance for uncertainty and step-by-step design, the automaker approached the project as a simple assembly project.
She said, "They appeared to think that it should be similar to assembling a vehicle - all the pieces are there and you can just put them together." VW has not commented on Zhang's story.
A person involved in the project said that VW had returned to Pantuo at one point to inform them that its focus group found potential V.MO drivers were uncomfortable with boarding or disembarking near to the rotating blades of their vehicle. The person involved said that the automaker asked for a redesign of the rotors to protect them 60 days prior to the project deadline.
VW and AVIC GA evaluated Pantuo’s design, finding it to be "uncontrollable." VW's project status document from September 2021 states that the concept did not show "convincing viability" because of poor aerodynamic performance, which left the projected range far below the target. The technical teams warned that the vehicle could not be made lighter enough.
In the same report, Pantuo's collaboration was called a "mistake." The VW team was blamed for not having "in-house experience in aviation" and Pantuo's "too ambitious design" had a "limited budget and development period."
VW decided that the project would need to be re-drawn.
VW's presentation stated that the automaker had offered to cancel the contract worth $590,000. This would cost about $414,000. Pantuo, however, refused to accept the offer. Pantuo argued that Volkswagen shared incorrect concept details with AVIC GA in a subsequent arbitration.
The arbitrator found in favor of VW and ordered Pantuo, Inc. to pay damages and costs totaling more than $120,000. VW's legal department hailed the ruling in an email as "an outstanding outcome". The arbitration commission did not respond to our request for a comment.
The matter was not over. According to Zhang and other witnesses, Shanghai Police opened an investigation in late 2015 into a criminal case that Pantuo filed against VW 2021, for alleged violation of trade secrets.
The automaker's internal correspondence from December 2023, reviewed by reveals that it regarded the criminal complaint against Pantuo as "baseless". It also viewed the tactic as a way to exert pressure on Pantuo for a favorable settlement in civil litigation.
The dispute escalated in September 2025, when Pantuo filed a $30 million lawsuit in a Guangdong court against VW and AVIC GA for intellectual-property theft. Pantuo alleged that Volkswagen, by sharing its designs and research with AVIC, had transferred the startup's intellectual property to an entity they considered an established rival.
AVIC did not respond to any questions regarding Pantuo's lawsuit against its unit. Shanghai police and Guangdong Court did not respond to requests for comments.
China's Supreme People's Court dismissed Pantuo's suit against Volkswagen in June, saying that the claim should have resolved through arbitration. The ruling allowed the suit to continue against AVIC GA and left the possibility open that Pantuo might return to the arbitrator to present its VW claim.
Zhang, now based out of Singapore, said she would be evaluating her legal options.
The shoe on the other foot
Some market observers say that VW's dispute against Pantuo is indicative of a wider shift in the way Western companies operate in China.
Since decades, foreign firms entering the Chinese marketplace have been worried that local partners will copy technology and pass it on to other domestic players.
Chinese firms are more likely to defend novel technologies developed by them, especially in areas where the government has set national priorities like the low altitude economy.
Mark Cohen, a former senior IP attache with the U.S. Embassy in Beijing, said: "The shoe is on the opposite foot." China will become more litigious as it acquires more desirable technology.
Businesses and law firms report that Chinese prosecutors are becoming more aggressive when it comes to pursuing cases of intellectual property, particularly in areas identified as national priority. The national agency overseeing prosecutions announced in February that it would be stepping up enforcement of IP theft claims due to "intensifying risks of technology leakage".
Chinese courts accepted 11,066 intellectual-property cases involving foreign parties in 2025, up 34% from 2024, according to a report by the Supreme People's Court. These figures do not indicate how many cases involved Chinese plaintiffs. The court reported in April that the number of foreign-related cases handled by the Intellectual Property Court of China grew at a rate of 19% per year between 2019 and 2025. This equates to 2,546 cases or one-tenth the total.
China's State council?Information office referred 'questions about flying-car developments and IP legal questions to the National Development and Reform Commission (the country's leading economic planner). The National Development and Reform Commission did not respond.
'FLYING TIGER'
VW partnered with Hunan, a manufacturer of drones, light aircraft, and flying cars, in 2022. The partnership developed the first full-scale model, dubbed "Flying Tiger" after the Chinese zodiac year.
The Flying Tiger's basic configuration was eight rotors to lift the aircraft and two for forward flight.
VW and Sunward developed two full-scale prototypes on the basis of that?model. The "Sky Garden" model, which featured a luxurious, spacious cabin, was the showcase for this project. The mock-up was occupied by the Chinese Premier Li Qiang in March 2023. This served as a sign of approval for the project, which aligned with China's increasing ambitions within the sector. Sunward did not respond to any questions regarding its involvement.
The model was sent to Volkswagen's Wolfsburg headquarters for a review of the project by Arno Antlitz, CFO, and CEO Oliver Blume. Antlitz encouraged the team to move forward, citing a need to learn from made-in China efforts.
The people reported that a third prototype was tested in Inner Mongolia at remote sites where engineers lived in and converted shipping containers.
VW will launch its new car in October 2023. Wanfeng Auto Holding Group, which already has a well-established aviation division, is helping VW prepare. Wanfeng is a Chinese car wheel manufacturer that acquired Austrian aerospace company Diamond Aircraft.
Volkswagen's top management committee for group operations held a meeting in March 2024 to discuss the possibility of bringing the flying cars to market. The legal, compliance, financial and strategy teams expressed concerns. One risk was the long time to profitability. Competitiveness was another risk. VW's strategy paper warned that "established Chinese players have already captured the momentum in China," naming rival automakers such as Xpeng, and Geely.
Ralf Brandstaetter, VW's China director, was the one who made the final decision.
Brandstaetter decided that VW had to concentrate on its core business, at a moment when passenger car sales were declining. Two people said that he killed the project by telling the team in June 2024 that it had been disbanded. According to documents, he broke the news in a WeChat Message to Wanfeng. The Chinese partner.
Brandstaetter did not respond to any questions regarding the decision to abandon the flying car, which was later confirmed by the board at VW China.
Wanfeng did not respond to the request for comment either. In a regulatory filing from November 2024, one of its units stated that the joint venture agreement with VW was over.
The COPS Investigate
After the failure of Volkswagen's flying car project, Zhou's legal troubles continued.
Documents in the case show that when the criminal investigation into an alleged violation of trade secrets began in December 2023 the police identified Zhou as the suspect - and not VW. Shanghai prosecutors began investigating the case in 2024.
Zhang, Pantuo, claimed that she filed her criminal complaint not against Zhou but VW.
Zhou was subjected to travel restrictions while the investigation proceeded. This is according to records from police that were seen by. She called it "shocking" and "heartbreaking" that Volkswagen treated the case against Zhou as an individual matter. Top executives told her this just a month ago.
The criminal investigation was not addressed in the Supreme People's Court's decision of June on the civil case. Shanghai prosecutors did not respond to an inquiry about the case of Zhou.
During the ongoing dispute over the flying cars, Wanfeng - the company VW once selected to bring its vehicle to the market - swooped into the fray to rescue German aerospace startup Volocopter from bankruptcy. Reporting by Ju-min Park in Beijing and Kevin Krolicki, Zhang Yan in Shanghai, and Claire Fu from Singapore. Kevin Krolicki, David Dolan and Kevin Krolicki wrote the article. (Editing by Brian Thevenot, David Crawshaw and David Thevenot.)
(source: Reuters)