Volkswagen removed from Euro Stoxx 50 index after 15 years

Volkswagen has been removed from the Euro Stoxx 50 index for the first time in 15 years. The exclusion, driven by the company's declining market capitalization, follows a period of significant share price depreciation. The manufacturer is being replaced in the index by Nokia and Engie.

The removal is expected to increase selling pressure on Volkswagen shares as exchange-traded funds (ETFs) tracking the index are required to divest their holdings. The company is currently facing several financial and strategic challenges, including intense competition from Chinese electric vehicle manufacturers, rising input costs, and a downward revision of its 2026 operating margin forecast to approximately 1%.

To address these issues, Volkswagen has approved a major restructuring plan that includes significant job cuts—potentially up to 100,000 positions—and the possible closure of several manufacturing plants in Germany. The company also reported approximately 10 billion euros in extraordinary charges, partly due to impairments related to its stake in Porsche.