Volkswagen exits Euro Stoxx 50 as index removal adds to pressure on troubled firm
Volkswagen has been removed from the Euro Stoxx 50, the eurozone's benchmark index of its largest listed companies, taking effect as markets opened on Monday just days after Europe's biggest carmaker warned that one-off charges would wipe out most of its profit this year.
Europe's largest automaker, Volkswagen, has been removed from the Euro Stoxx 50 index, adding to the pressure on the struggling company. The index provider Stoxx announced the change during its annual review in early September, and it became effective before trading began on Monday. Finland's Nokia gained entry into the index, while French utility Engie joined Volkswagen's departure.
The removal stems from Volkswagen's falling valuation, which no longer meets the index's threshold based on free-float market value. However, the impact of the removal is significant, as funds tracking the benchmark will need to sell their Volkswagen holdings, exacerbating the pressure on the stock. Volkswagen shares have plummeted nearly 30% since the beginning of the year and have declined over 6% since last Monday's opening price, currently trading around €76.
The timing could not have been worse for Volkswagen. On Friday, the company disclosed €10 billion in one-off charges and revised its operating margin forecast for 2026 to a maximum of 1%, down from its previous range of 4% to 5.5%. Analysts had anticipated a margin of 4.1%. A substantial portion of the charges is due to a writedown at Porsche, which Volkswagen owns 75.4% of, following the sports car maker's downgrade of medium-term expectations.
Other factors include expanded early retirement schemes, impairments in China, and the planned sale of Volkswagen Osnabrück GmbH, a manufacturing plant in Osnabrück, Germany.
Despite the unfavorable outlook, some investors remain optimistic. Volkswagen's underlying margin is estimated at around 4%, and the company maintains its cash flow and liquidity forecasts. Deutsche Bank, which has a buy rating on the shares with a €115 price target, believes the headline significantly overstates the business's deterioration.
The bank warns that additional restructuring charges confirm the transformation process is costly and complex, expecting more charges to follow in the coming months. Volkswagen's third-quarter results are scheduled for release on October 29.
Written by urgent.news from Euronews's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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