Volkswagen Drops Out of Prestigious European Stock Index After 15 Years

Volkswagen has been removed from the prestigious European stock index Euro Stoxx 50, where it had held a continuous spot for the past 15 years. The decision to drop the automaker was actually made back in early September as part of the index's regular rebalancing, but it only took effect now — just days after the company sharply downgraded its forecast for the current year.

Volkswagen now expects an operating margin of no more than one percent, down from the previously stated 4–5.5 percent. According to Euronews, the company's results will be hit by roughly €10 billion (243 billion crowns) in one-off charges.

The reason: write-downs tied to Porsche

About €6 billion (over 145 billion crowns) of that sum stems from a write-down related to Porsche. Volkswagen, which holds a controlling stake in the sports car maker, was forced to admit that Porsche's real value has fallen below previous estimates amid the brand's deteriorating outlook.

Volkswagen's spot in the index was taken by Finland's Nokia — the former mobile phone maker that now focuses on network infrastructure and is benefiting from the boom in data centres driven by the rise of artificial intelligence.

What it means for investors

Funds that track the index are required to drop Volkswagen shares from their portfolios, which could add short-term selling pressure on the stock. At the same time, the automaker loses some of the automatic demand and investor attention that came with being part of one of Europe's most prestigious indices.

Still, this isn't the first time Volkswagen has parted ways with Europe's stock market elite: the group first joined the index back in 2000, then dropped out and returned several times over the years. The most recent return came in 2011, after which the company held its place in the index continuously for 15 years.

Source: novinky.cz