The Woburn, Mass.-based flying car company will still be based in the United States following the acquisition.
Terrafugia is scheduled to start selling its first flying car in 2019. A vertical takeoff and landing vehicle will follow by 2023. Its engineering team has been expanded by three times in anticipation of the Chinese takeover.
Chris Jaran has been announced as Terrafugia CEO with immediate effect. He was the former managing director for Bell Helicopter China.
Terrafugia was founded in 2006 by five award-winning graduates of the Massachusetts Institute of Technology. The company said its aim was to produce flying cars for the masses.
“We started Terrafugia with a vision to change the future of transportation with practical flying cars that enable a new dimension of personal freedom. Now as part of Geely Holding Group, I am confident that we can reach that vision and subsequent commercial success by utilising the Groups shared global synergy,” said Terrafugia founder and CTO Carl Dietrich.
Since 2010, Geely has been flexing its financial muscle globally. It bought up Volvo Car from Ford in 2010 and Manganese Bronze Holding (maker of the legendary London taxis) in 2013. Earlier this year, Geely went on to take up big stakes in Proton and a majority share in Lotus.