Volkswagen exits eurozone’s main stock index, shares fall to 16-year low

German automaker Volkswagen, as of Monday, September 21, is no longer included in the Euro Stoxx 50, one of the eurozone’s main stock indices. The changes, announced by index operator STOXX at the beginning of the month, took effect with the opening of European markets.

Preferred shares of Volkswagen, as well as Dutch information company Wolters Kluwer, were removed from the Euro Stoxx 50. They were replaced by French energy company Engie and Finnish telecommunications equipment maker Nokia.

The Euro Stoxx 50 includes the 50 largest and most liquid public companies in the eurozone and serves as one of the key benchmarks for the European stock market.

One of the main criteria for inclusion in the index is the market capitalization of shares in free float. The prolonged decline in Volkswagen’s share price has caused the group to fall in the ranking of the largest eurozone companies.

Volkswagen shares have lost more than a quarter of their value this year and almost 60% over the past five years. According to the Financial Times, quotes have dropped to their lowest levels in about 16 years and are more than 75% below the 2021 peak.

Exclusion from the index does not directly affect Volkswagen’s operations, but it may put additional pressure on the share price. Investment funds and ETFs that physically replicate the Euro Stoxx 50 structure will have to sell Volkswagen shares and reallocate funds to companies that entered the index.

Moreover, presence in the leading index gives companies additional visibility among international investors and supports the liquidity of their shares.

Volkswagen’s stock market problems have coincided with a deterioration in the group’s financial prospects. The company faces weak demand in China, increased competition from local electric vehicle makers, high costs in Germany, and a large-scale restructuring.

Last week Volkswagen also lowered its profitability forecast for 2026. The company expects special charges of about €10 billion, a large part of which is related to the impairment of its stake in Porsche and business restructuring.

Volkswagen itself says it intends to return to the Euro Stoxx 50. The group hopes to improve financial results by cutting costs, simplifying its corporate structure, and increasing profitability.

Based on materials from: STOXX, Tagesschau, Financial Times