The cargo vessel carrying thousands of luxury cars and had caught on fire late last month sunk in the mid-Atlantic on Tuesday. A major fire broke out onboard the ship more than a week ago, destroying luxury vehicles such as Lamborghinis, Bentleys, and Porsches that were being transported from Germany.

Volkswagen, the owner of most of the cars that were destroyed aboard the ship, confirmed that the ship had sunk. The company said the cost of the vehicles was covered by insurance. Sources claimed that the vehicles that were lost could be worth as much as $155 million.

The ship, called the Felicity Ace, sank just 250 miles off Portugal's Azores Islands. The Portuguese navy said the vessel was in the process of being towed by a salvage company based in Singapore called MOL Ship Management. The fire on board the vessel was reportedly put out before the ship was towed away.

Port authorities on the island of Faial said the 200-meter-long ship sank starboard first. Authorities speculated that the damage caused by the fire may have resulted in structural issues that worsened as the ship was towed. The ship reportedly began to take in water as another ship started to tow it away.

The Portuguese navy said the ship had sunk in waters with a depth of around 30,000 feet. Helicopters from the Portuguese Air Force were able to rescue the crew that was onboard the ship.

Volkswagen and other European carmakers that reportedly had vehicles on board did not disclose the number of vehicles, their makes, and their models to the public. However, customers in the U.S. and other countries had been contacted by their dealers regarding possible delays in the delivery of their orders.

Porsche Cars North America said it is working to immediately replace every car that was lost during the incident. The company claimed that replacement vehicles would be built, and customers could expect delivery as soon as possible.

Portuguese authorities confirmed that the ship was delivering both electric and non-electric vehicles. Investigators believe that the origin of the fire could be linked to defective lithium batteries used in electric vehicles. However, investigators claim they don't have conclusive proof as of now.

Apart from the financial loss, environmental groups have expressed concerns about the impact of the incident on the nearby oceans and aquatic ecosystems. The ship was carrying a total of 2,000 metric tons of gasoline and oil. It had a cargo capacity of around 17,000 metric tons.

Only a few bits of wreckage and a small area of oil were visible where the ship went down. The Portuguese navy said it would continue to monitor the area for signs of a spill.