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Felicity Ace sinks with thousands of VWs, Porsches, Lamborghinis

The stricken ship Felicity Ace sank overnight after a week of salvage efforts ultimately proved unsuccessful. The ship, which was carrying up to 4,000 VW Group cars, went to the bottom unexpectedly while a salvage team was attempting to tow it to shore, Bloomberg reports.  "Initial reports from the local salvage team state that the vessel had sunk at around 9AM local time having suffered a list to starboard," Mitsui O.S.K. Lines transportation company (MOL), which owns the Felicity Ace, said in a statement released early Tuesday.    "The last vessel position was around 220nm off the Azores," MOL said. "The salvage crafts will remain around the area to monitor the situation. Further information will be provided as it becomes available." The ship sank after being battered by waves and listing 45 degrees to starboard, the ship’s operator said. “The weather was pretty rough out there,” Pat Adamson, a spokesperson for MOL Ship Management (Singapore), a unit of Mitsui OSK Lines Ltd., said by phone. “And then she sank, which was a surprise.” VW, Porsche, Audi, Bentley and Lamborghini-branded models were aboard the ship, which was headed to Rhode Island from GermanyÂ’s Emden port when the fire broke out on Feb. 16.  Rough seas and ongoing fires fueled by the lithium-ion batteries of EVs onboard delayed the ship's salvage and recovery operations for the better part of a week. While the likelihood of salvaging the smoke and potentially fire- and water-damaged vehicles from Felicity Ace's hold was slim to none, some had held out hope that their special-ordered vehicles might survive the mishap.  The Panama-flagged Felicity Ace was safely evacuated of its 22 crew members by the Portuguese navy after a fire started in its hold more than a week ago. The ship can carry up to 4,000 cars. European carmakers declined to discuss how many vehicles and what models were on board, but it appears to have been transporting approximately 2,500 cars, including roughly 1,100 Porsches and an undetermined number of Volkswagens.  The cars aboard were on order. Porsche customers in the United States were being contacted by their dealers, the company said. “We are already working to replace every car affected by this incident and the first new cars will be built soon,” Angus Fitton, vice president of PR at Porsche Cars North America, Inc., told The Associated Press in an email. The ship sank in water nearly 10,000 feet deep, the Portuguese Navy said.

VW may make Bentley a subsidiary of Audi

FRANKFURT — Volkswagen plans to make British luxury carmaker Bentley a subsidiary of its Audi division as it seeks economies of scale among its top-end brands, German trade publication Automobilwoche reported. Bentley, for now overseen by the head of VW's Porsche business, Oliver Blume, will from next year be part of Audi, where VW group Chief Executive Herbert Diess believes it has more potential, Automobilwoche cited company sources as saying. Synergies could include using Audi technology for a new Bentley SUV, it added. Volkswagen, which declined to comment on the report, is reviewing the future of its high-performance brands Lamborghini, Bugatti and Ducati motorcycles as part of broader quest for more economies of scale as it shifts to mass producing electric cars. Sources familiar with the matter told Reuters this month that Volkswagen was working on plans to prepare Lamborghini for a stock market listing. Related Video: Audi Bentley Volkswagen

Former Lamborghini designer reportedly headed to Hyundai

Luc Donckerwolke (pictured above) only left his position as the Director of Design for Bentley in early June, but he might have already had a new gig lined up as he was walking out the door. Donckerwolke is reportedly teaming up with former Volkswagen Group styling bigwig Peter Schreyer at Hyundai Motor, in a position to eventually take over the look of all of the Korean brands' vehicles. At the moment, this major hire for Hyundai and Kia is still just a rumor, though, and the Korean automaker is playing it close to the vest. Company spokesperson Jim Trainor tells Autoblog, "We do not comment on speculation concerning potential appointments." However, insiders tell Automotive News that the deal is the reason for Donckerwolke walking away from his long career among VW's brands. In Korea, Donckerwolke would hold a position under Schreyer at first, and he would take over Hyundai and Kia's design duties when Schreyer retires, which is expected in about two years. Donckerwolke joined the German automotive giant in 1992 and eventually came to define the modern look of Lamborghini by penning both the Murcielago and Gallardo. In 2011, he became the Head of Advanced Design for VW Group and took over styling duties at Bentley in 2012. Schreyer left a fruitful career at VW Group, including penning the original Audi TT, to join Kia in 2006. He gained the overall design duties for the Hyundai and Kia brands in 2012. Ousted VW Chairman Ferdinand Piech once said that he was regretful of losing the talented stylist. Related Video: