The dream of futuristic air taxis under Hyundai faces turbulence after its Supernal startup paused work on its aircraft program following the departures of CEO Jaiwon Shin and Chief Technology Officer David McBride.
The pause follows staff cuts earlier this summer and the abrupt winding down of its headquarters in 2024. Supernal's eVTOL aircraft program, once propelled by ambitious test flights and a 2028 launch goal, now faces a reassessment under new leadership, according to TechCrunch.
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Hyundai Outlines Strategic Leadership Transition and Long-Term AAM Commitment
Supernal said Aug. 27 that the South Korean auto giant will continue investing in the advanced air mobility sector, even as it implements leadership changes. Supernal added that Shin, who has led the group's Advanced Air Mobility division since 2019 and became CEO in 2021, will transition into an advisory role.
Hyundai said the move reflects a shift from early-stage research and development toward a new phase focused on business model execution and operational growth. The company emphasized that while the AAM industry faces regulatory and infrastructure hurdles, it remains confident in the long-term potential of sustainable air mobility solutions.
Test Flights Grounded Amid Internal Shake-Up
Supernal conducted its first technology demonstrator test flight earlier this year, TechCrunch reported. The company had planned further tests, including an untethered flight, and aimed to launch a commercial eVTOL service by 2028.
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At the 2024 CES on Jan. 7 in Las Vegas, Shin said Supernal was nearly ready to "push the limits of the technology with the demonstrator," AIN reported. In August 2024, McBride told Vertical Mag that the test flight would "validate our ability to build an aircraft" ahead of the 2028 goal.
"Autonomy is in the future," McBride said. "We're all working toward that, we're developing systems, and the avionics providers are talking about making these vehicles autonomous eventually."
Supernal spun out of Hyundai in 2021 and has faced repeated challenges. TechCrunch reported in 2024 that Supernal was shifting its global headquarters from Washington, D.C., to Irvine, California, with about 5% of its workforce, roughly 35 to 40 employees, asked to relocate.
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Electric Air Taxi Industry Faces Widespread Turbulence
Supernal's pause comes as the electric air taxi industry undergoes major shifts, TechCrunch reported. Some companies, such as Toyota-backed Joby Aviation, have been securing partnerships and acquisitions, while others, including Lilium, have gone out of business.
This represents the second transportation venture under Hyundai to encounter difficulties in recent years. In 2024, the company increased its investment in autonomous vehicle startup Motional after partner Aptiv ended funding support, according to TechCrunch.
That restructuring involved layoffs of about 550 employees or 40% of Motional's staff and the departure of CEO Karl Iagnemma, who stepped into a senior strategy adviser role. The leadership change came as Hyundai agreed in May to invest another $1 billion into the joint venture, including a $475 million direct investment and $448 million to buy 11% of Aptiv's equity interest, giving Hyundai a majority stake.
As part of the restructuring, TechCrunch reported Motional paused commercial operations and delayed its planned robotaxi launch with Hyundai Ioniq 5 vehicles until 2026. The company also ended autonomous Uber Eats deliveries in Santa Monica, though it continued testing with safety operators in place.
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