Volkswagen AG finds itself embroiled in a legal ordeal as it faces dual lawsuits in Germany stemming from claims that a battery in a Porsche electric vehicle was the catalyst for a fire that engulfed a cargo ship in 2022, resulting in its eventual sinking with thousands of cars onboard. The lawsuits, one filed in Stuttgart where VW's Porsche unit is headquartered, involve several parties, including Mitsui OSK Lines Ltd., the ship's operator, and Allianz SE, a key insurer of the vessel.
The lawsuit filed in Stuttgart has been on hold as mediation talks are underway for a separate case related to the ship, currently pending in a court in Braunschweig. Should no settlement be reached through mediation, both cases are poised to resume. A Braunschweig judge is scheduled to preside over the talks later this month, as confirmed by a court spokesperson.
Volkswagen has acknowledged the existence of the lawsuits but has refrained from providing further comments at this time, while Mitsui OSK Lines Ltd. and Allianz SE have yet to respond to requests for statements. The Panama-flagged Felicity Ace ignited near the Azores archipelago in the Atlantic Ocean, causing the crew to evacuate and leaving the vessel adrift. An internal communication from VW's U.S. operations disclosed that nearly 4,000 vehicles were aboard the ship at the time of the incident. The potential financial impact of the cargo ship's loss on the automaker was estimated by a risk-modeling company to be at least $155 million.
Allegations put forth by the plaintiffs claim that the fire originated from the lithium-ion battery of a Porsche model, asserting that VW neglected to adequately warn them of the potential dangers and precautions necessary for the transportation of such vehicles. The Stuttgart court handling the case reported that while the lawsuit was initiated a year ago, a definitive review of the claims has yet to take place due to disputes between the involved parties regarding the required amount of collateral to be posted before legal proceedings can advance.