Volkswagen Group sued over Felicity Ace fire

VOLKSWAGEN GROUP is being sued by both the owners and insurers of the Felicity Ace car carrier which sunk off the Portuguese Azores in 2022 following a fire alleged to have been ignited by a malfunctioning electric vehicle.

The fire consumed the 17-year-old Felicity Ace within days, and following a fortnight floating adrift, the 656-foot vessel was eventually lost to the Atlantic Ocean on March 2.

On board were some 3956 Volkswagen Group vehicles, including approximately 1100 Porsches, 189 Bentleys, and several Lamborghinis.

Fortunately, none of the 22 crew aboard the carrier were injured.

The vessel departed the port of Emden, Germany on February 10 and was scheduled to arrive in Davisville, Rhode Island, on February 23, but the fire broke out on February 16, which forced the evacuation of the ship’s crew by the Portuguese navy and Ponta Delgada Maritime Search and Rescue Coordination Centre.

Fanning the flames of debate over the safety of electric vehicle transportation, the lawsuits are reported to involve Mitsui OSK Lines which operated the Felicity Ace, and her insurer, Allianz, which has been a vocal opponent on the dangers of electric vehicle fires.

According to a report published by Bloomberg this week, the plaintiffs allege that “the fire originated from the lithium-ion battery of a Porsche model and claim Volkswagen Group failed to inform them of the danger and necessary precautions needed to transport such vehicles”.

GoAuto understands the cases are currently suspended pending settlement discussions.

Reports at the time of the blaze suggest the overall loss could run to as high as $US438 million ($A669m).

Insurer Allianz has issued several statements citing the fire risk from EVs and highlighting fires as one of the main causes of maritime claims it processes. It has called for improved fire safety standards and precautions in transporting electric vehicles, which it says have claimed other vessels.

In 2023, pictures from a salvage operation of another car carrier, the Fremantle Highway, showed electric vehicles still smouldering weeks after the fire was extinguished aboard the ship.

The insurer says the nature of lithium-ion batteries is such that fires are far more intense and difficult to fight and dramatically increase the risk of a runaway situation aboard the vessel.

According to a report published by Maritime Executive, the shipping industry is beginning to recognise the unique hazards presented by electric vehicle fires and is updating rules surrounding EV carriage. Included in the precautions are the fitment of additional fire detection systems and alarms and upgraded firefighting equipment.

The increased number of electric vehicles being transported around the globe is also said to be driving change in the design of so-called “roll-on/roll-off” carriers, with at least one new vessel offering an EV-specific layout to assist in containing any potential fire at sea.

Perhaps not considered in the Felicity Ace saga, however, is the environmental cost of fires of such magnitude. Remediation costs for such catastrophes are understood to be far higher than for traditional car carriers lost to fire, with figures “easily reaching nine figures”.

Speaking with Maritime Executive, Allianz Global Corporate and Specialty head of marine risk consulting Captain Rahul Khanna, said: “Environmental concerns are contributing to rising salvage and wreck removal costs as ship owners and insurers are expected to ‘go the extra mile’ to protect the environment and local economies”.

“Previously, a wreck might have been left in-situ if it posed no danger to navigation. Now, authorities want wrecks removed and the marine environment restored, irrespective of costs,” he said.

GoAuto understands that as the Felicity Ace was lost in deep water, no such recovery attempt will be made.