A burning cargo ship carrying thousands of luxury cars has sunk.
Around 4,000 vehicles, worth an estimated $400 million, were carried on the Felicity Ace vessel.
The ship and its expensive vehicles sank near the Azores around 900 miles west of Portugal on Tuesday. It is now on the sea floor.
The captain of a nearby port told the news outlet that when the recovery crews began to tow the vessel, it lost its stability and sank.
The Volkswagen cars were on their way to Rhode Island when the fire broke out. On the same day, all 22 crew members were rescued.
The cause of the fire is unlikely to ever be known, though some speculated that it could have been the result of a malfunction with the electric car's battery.
Customers who are affected are expected to be contacted by their dealers.
The first new cars will be built soon, and we are already working to replace every car affected by the incident.
Volkswagen said before the loss of the ship that insurance would cover vehicle damage.
The Russell Group estimated that the cargo vessel was carrying $400 million worth of vehicles.
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. An event like this won't instill trust with consumers.
Volkswagen hasn't commented on the loss of the vehicles. When we hear back, we will update this article.
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