Abandoned cargo ship carrying more than 1,000 luxury cars is burning in the Atlantic

An abandoned cargo ship carrying more than 1,000 Porsches and other luxury vehicles is burning in the Atlantic Ocean.

The fire on the Felicity Ace broke out on Wednesday. The ship was sailing about 90 kilometers southwest of the island of Faial in Portugal when the flames erupted, according to the country's military.

All 22 crew members on board were rescued by members of the Portuguese Air Force and are in "good health," according to Snowcape Car Carriers, the ship's owner.

The Felicity Ace is still adrift in the Atlantic Ocean but Snowcape Car Carriers said an initial salvage team is estimated to arrive Friday.

"Further salvage assets are being readied to attend the vessel," the company said.

It's unclear what caused the fire.

A ship tracking website shows that the Felicity Ace was en route to Rhode Island.

The fire comes as car manufacturers grapple with inventory issues brought on by the chip shortage.

“Our immediate thoughts are of relief that the 22 crew of the merchant ship 'Felicity Ace' are safe and well," Porsche said in a statement. "We are in contact with the shipping company and the details of the cars on board are now known. While it remains too early to confirm what occurred and next steps, we are – along with our colleagues at Porsche AG – supporting our customers and our dealers as best we can to find solutions."

Volkswagen confirmed to ABC News that it too had cars on the vessel.

"We are in contact with the shipping company to get more information about the incident," the German automaker said.