Volkswagen Drops Out of Euro Stoxx 50 Index as Pressure Mounts
- On Monday, Volkswagen was ejected from the Euro Stoxx 50 index following a Friday profit warning in which the automaker cut its operating margin forecast to 1%, down from 4% to 5.5%.
- Volkswagen flagged around €10 billion in one-off charges, with more than €6 billion stemming from a writedown at Porsche, in which the company holds a 75.4% stake, amid "further deterioration" in the China market.
- Shares have fallen 27.5% this year despite approval earlier this month of a major restructuring effort to cut 100,000 jobs as Volkswagen grapples with waning profits and the transition to EVs.
- Funds tracking the Euro Stoxx index must now sell their Volkswagen holdings, adding pressure to the stock; Deutsche Bank analysts said the warning "initially looks severe" but "significantly overstates the deterioration in the underlying business."
- The company expects "additional restructuring charges" in the coming months as the transformation process proves "very expensive and complex," reflecting broader struggles across Europe's auto sector where Jeep and Dodge-maker Stellantis faced similar ejection last year.
41 Articles
41 Articles
The troubles of one of Europe's largest carmakers continue to deepen. Volkswagen dropped out of the prestigious Euro Stoxx 50 index on Monday after 15 years, which brings together the leading publicly traded companies in the eurozone. The place in the index is determined primarily by the market value of freely traded shares, while companies must also meet liquidity requirements. Those that are among the largest in the eurozone according to these…
Shares of Volkswagen, Europe's largest automaker, have been removed from the EuroStoxx 50 index, which comprises 50 leading European stocks. According to EuroNews, the index operator Stoxx excluded Volkswagen from the EuroStoxx 50 starting trading on the 21st (local time). The EuroStoxx 50 is a representative stock index composed of the top 50 companies by market capitalization in the Eurozone (countries using the euro).
Volkswagen was excluded from the European "blue chip" index for the first time in 15 years, writes the Financial Times (FT)
Volkswagen was excluded from the European "blue chip" index for the first time in 15 years, writes the Financial Times (FT).The German company dropped out of the Euro Stoxx 50 after shares fell to a 16-year low.Since 2021, Volkswagen's...
(Berlin=Yonhap News) Correspondent Kim Gye-yeon = Volkswagen, Europe's largest automaker, suffers the humiliation of being removed from the EuroStoxx 50 stock index, which comprises 50 leading European stocks...
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