Belgian police began firing bullets as they pursued two men, who are believed to be from Iraq, in a high-speed chase as the car crossed over the border on the A16.
The vehicle reached speeds of up to 125mph as it weaved in and out of traffic on the busy motorway and became so badly damaged that it was travelling on its wheel rims.
It caused a series of accidents, including one in which a motorcylist drove into the back of a lorry and was fatally killed.
At least 15 bullets were fired during the incident, which led to the closure of the entire motorway in the Belgium-France direction.
A police source said: "The incident started soon after 5.30am. Belgian police were pursuing suspected people smugglers on the A16.
— DirectActus (@DirectActus) May 5, 2016"Shots were fired, and the car being chased caused a huge pile-up of traffic. There were numerous injuries, and one fatality."
Gunfire was heard by a number of witnesses before the car being chased was forced to a halt. Two men inside were seriously wounded and were immediately airlifted to hospital in nearby Lille.
"Both were hit by police bullets and immobilised, while two other men were arrested," said another witness.
The area of northern France where the accident happened is a notorious for gangs of people smugglers who arrange trips across the Channel to the UK for migrants sleeping rough in the area.
They charge up to £2,000 a head, often smuggling their ‘clients’ in the back of lorries and vans.
The lucrative trade is run by criminals from all over Europe, including many from the UK.
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