Skip to main content
Sister Publication Links
  • Automotive News
  • Automobilwoche
  • Automotive News Canada
  • Automotive News China
Subscribe
  • Subscribe
  • Newsletters
  • Login
  • HOME
    • Latest news
    • Automakers
    • Suppliers
    • New Product
    • Environment/Emissions
    • Sales By Market
    • On The Move
    • Auto Shows
    • Munich Auto Show
    • Geneva Auto Show
    • Paris Auto Show
    • Beijing Auto Show
    • Shanghai Auto Show
  • Features
    • Long Read
    • Interview of the Month
    • Focus on Electrification
    • Focus on Technology
    • Segment Analysis
    • Cars & Concepts
    • Supplier Spotlight
    • Europe By The Numbers
  • Opinion
    • Blogs
    • Commentary
    • Guest columnists
  • Photos
    • Photo Galleries
    • Geneva Photo Gallery
    • Beijing Photo Gallery
    • Frankfurt Photo Gallery
    • Paris Photo Gallery
    • Shanghai Photo Gallery
  • Podcasts
  • Car Cutaways
  • EVENTS
    • ANE Congress
    • ANE Rising Stars
    • ANE Eurostars
  • More
    • Publishing Partners
    • Social Media
    • Contact Us
    • Media Kit
    • About Us
    • Capgemini: Invent Head on automotive takeaways from CES 2023
    • Capgemini: Securing the industry's future through a radical rethink
    • Capgemini: Succeeding with the automated driving journey through AI
    • Capgemini: The circular economy is spurring new thinking on EV batteries
    • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
    • HEXAGON: Plugging into data is the only way to make winning EVs
    • TUV Rheinland: Ideas, services and certifications for smart mobility
    • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
    • Toyota Europe
    • UFI Filters
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter
MENU
Breadcrumb
  1. Home
  2. Automakers
February 21, 2022 01:46 PM

VW faces multimillions in losses from ship fire

VW Group's loss from ship fire estimated at $155M.

Bloomberg
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    Smoking coming from Felicity Ace ship carrying VW Group models
    Reuters

    The cargo ship that caught fire last week carrying about 4,000 Volkswagen Group vehicles could cost the automaker at least $155 million, according to one consultant's estimate.

    Of the roughly $438 million total value of goods aboard the Felicity Ace, which went up in flames off the coast of Portugal's Azores Islands, Russell Group said Monday it estimates there are $401 million worth of cars.

    VW, Porsche, Audi, Bentley and Lamborghini models were on the vessel.

    A VW spokesperson declined to comment on the matter Monday.

    A spokeswoman for BMW Group said none of the company's vehicles are on board, while a Mercedes-Benz spokesman said the automaker isn't aware of any of its vehicles being on the ship.

    Mitsui OSK Lines, the operator of Felicity Ace, said on its website that two large tugs with firefighting equipment were expected to arrive Monday morning local time to start spraying water together with an initial salvage team that was on board already to cool down the ship.

    No oil leakage has been confirmed and the vessel remains stable, the transport company said.

    Russell Group is modeling the total value of vehicles on board, so its loss projections assume all vehicles are lost, according to a spokesman.

    The consultant estimates auto companies other than VW may have lost about $246 million worth of vehicles.

    The fire could cost $334.6 million, according to a revised estimate from a U.S. economist. The Anderson Economic Group on Monday increased its estimate from $282 million on Friday.

    VW has not disclosed its potential losses from the fire aboard the crippled Felicity Ace and it is unclear how much insurance will cover the costs for the lost vehicles.

    Of the 4,000 vehicles, 1,100 of them are Porsches. The rest of the vehicles are from the VW brand, Audi, Bentley and Lamborghini, according to various reports.

    "The lost Porsche vehicles alone, which we assume are 1,100 vehicles including many customized high-end models, would exceed $140 million. We further anticipate salvage costs in excess of $150 million," Anderson's report said. "Similar disasters in the recent past suggests total losses for this incident may not be realized for a year or more and could be far above the value of the lost cargo."

    "Given that the ship continues to burn, no crew is onboard, and suspected lithium fires have been confirmed, we now estimate that nearly all of the vehicles are irreparably damaged and will not be saleable in the U.S. market. We note that these vehicles have experienced fire, smoke, and water damage, and they risk being submerged in salt water, as well. Today’s report that the fires are ebbing included the telling explanation that there was probably little combustible material left to burn."

    Future shipping risks

    Anderson's report also raised questions about future risks of shipping EVs.

    "This incident underscores another safety warning about electric vehicles," the report said. "EVs rely on very large batteries with unusual fire risks.

    "The Felicity Ace, built in 2005, undoubtedly carried fire suppression equipment in the cargo hold. Nonetheless, reports from the scene indicate that smoke from the burning vehicles overwhelmed the crew’s ability to suppress the fire, resulting in the ship’s rapid abandonment...

    "We do not yet know whether the EV batteries caused the fire, or if they were ignited with the rest of the ship. In either case, the dire situation demonstrates a need to make potentially expensive safety investments to handle a future of extensive EV deliveries."

    Philip Nussel contributed

    RECOMMENDED FOR YOU
    New Toyota CEO Koji Sato faces big challenges in critical new era
    Recommended for You
    satoandakio.jpg
    New Toyota CEO Koji Sato faces big challenges in critical new era
    Tesla Model 3 red web_0.jpg
    UK has concerns over U.S. green subsidy act, finance minister says
    Renault Douai_Plant
    Renault will offer workers 7.5% pay increase, report says
    Capgemini Invent Head on automotive takeaways from CES 2023
    Sponsored Content: Capgemini Invent Head on automotive takeaways from CES 2023
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up and get the best of Automotive News Europe delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    SUBSCRIBE TODAY

    Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

    SUBSCRIBE NOW
    Connect with Us
    • Twitter
    • Facebook
    • LinkedIn
    • Instagram

    Founded in 1996, Automotive News Europe is the preferred information source for decision-makers and opinion leaders operating in Europe.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI  48207-2997
    Tel: +1 877-812-1584

    Email Us

    ISSN 2643-6590 (print)
    ISSN 2643-6604 (online)

     

    Resources
    • About us
    • Contact Us
    • Advertise with us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Awards
    • Rising Stars
    • Eurostars
    • Leading Women
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News Europe
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • HOME
      • Latest news
      • Automakers
      • Suppliers
      • New Product
      • Environment/Emissions
      • Sales By Market
      • On The Move
      • Auto Shows
        • Munich Auto Show
        • Geneva Auto Show
        • Paris Auto Show
        • Beijing Auto Show
        • Shanghai Auto Show
    • Features
      • Long Read
      • Interview of the Month
      • Focus on Electrification
      • Focus on Technology
      • Segment Analysis
      • Cars & Concepts
      • Supplier Spotlight
      • Europe By The Numbers
    • Opinion
      • Blogs
      • Commentary
      • Guest columnists
    • Photos
      • Photo Galleries
      • Geneva Photo Gallery
      • Beijing Photo Gallery
      • Frankfurt Photo Gallery
      • Paris Photo Gallery
      • Shanghai Photo Gallery
    • Podcasts
    • Car Cutaways
    • EVENTS
      • ANE Congress
      • ANE Rising Stars
      • ANE Eurostars
    • More
      • Publishing Partners
        • Capgemini: Invent Head on automotive takeaways from CES 2023
        • Capgemini: Securing the industry's future through a radical rethink
        • Capgemini: Succeeding with the automated driving journey through AI
        • Capgemini: The circular economy is spurring new thinking on EV batteries
        • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
        • HEXAGON: Plugging into data is the only way to make winning EVs
        • TUV Rheinland: Ideas, services and certifications for smart mobility
        • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
        • Toyota Europe
        • UFI Filters
      • Social Media
        • Facebook
        • Instagram
        • LinkedIn
        • Twitter
      • Contact Us
      • Media Kit
      • About Us