The 200-metre-long ship caught fire near the Azores Islands on Wednesday.
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Portugal’s navy said it had rescued 22 crew members from a large cargo ship that caught fire in the Atlantic Ocean.
The "Felicity Ace" had sounded the alarm after a blaze broke out in the hold, the Portuguese Navy said in a statement on Wednesday.
The 200-metre-long ship was sailing from Emden in Germany to the port of Davisville in the United States.
The Panama-flagged vessel had been carrying nearly 4,000 luxury cars when it caught fire, including Porsches, Audis and Bentleys.
Portugal’s navy said one of its patrol boats and four merchant vessels were helping with the rescue, near the Azores island of Faial. The Portuguese Air Force were also mobilised.
The burning cargo ship was still drifting off the Azores on Thursday after the crew had been evacuated.
Other vessels travelling in the area had been warned about its location, according to Portuguese navy spokesman Cmdr. José Sousa Luís.
"The Portuguese Navy ... remains on-site to monitor the situation, with no traces of pollution in the area being visible so far," a further statement added.
A plan to tow the "Felicity Ace" is to due be decided, authorities added.