An estimate from the risk modeling firm Russell Group shows that a fire on a cargo ship in the Atlantic Ocean destroyed around $400 million worth of luxury cars and commercial vehicles.
The large ship caught fire as it traveled from Germany to the US last week. All 22 crew members were evacuated from the Portuguese Navy on the same day.
Around 4,000 vehicles from the Volkswagen Group were included in the cargo on the ship, according to a spokesman for the brand. The boat carried several cars.
Insider has not verified the vehicle count. The Volkswagen Group did not reply immediately.
Analysts from the Russell Group think the fire will cost the German automaker at least $155 million.
"It appears that everything above the waterline has been burned, although vehicles stowed below the waterline will likely also be affected by burning debris from upper decks and fire-fighting water," said a note on Monday.
The Associated Press reported on Tuesday that the fire had begun subsiding. The ship is expected to be towed to the Bahamas.
The fire comes at a bad time for the auto industry.
The incident comes at a bad time for global carmakers who are in the middle of a supply chain crisis and have to delay new cars. Suki Basi, managing director of the Russell Group, said that an event like this won't do much to instill trust with consumers.
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