For the first time in 15 years, Volkswagen was removed from the Eurozone's most important blue-chip index. Traders said that this move may further increase the downward pressure on the German car company's stock price. Volkswagen's stock price has fallen by more than three-quarters from the high point during the 2021 stock market rally, and is currently hovering at a low level of about 16 years. The index claims to track “leading companies” in various industries in the Eurozone. This highlights the threat posed to the automotive industry by the rise of low-cost competitors, and also reflects the market's skepticism about Volkswagen's historic restructuring plans. The plan will cut 100,000 jobs. Analysts said that as exchange-traded funds tracking the index sell off their holdings, the exclusion of the public could increase pressure on their stock prices. According to Stoxx data, a total of 30 ETFs track the Euro Stoxx 50 index, with a total asset size of 59 billion euros; in addition, there are also more than 110,000 active structured products linked to the index, with sales exceeding 68 billion euros. Volkswagen said, “Being included in an index does not change the basic strength of a company.” The company added that although the automotive industry is undergoing the “most significant transformation” in history, VW “remains an attractive investment for investors.”

For the first time in 15 years, Volkswagen was removed from the Eurozone's most important blue-chip index. Traders said that this move may further increase the downward pressure on the German car company's stock price. Volkswagen's stock price has fallen by more than three-quarters from the high point during the 2021 stock market rally, and is currently hovering at a low level of about 16 years. The index claims to track “leading companies” in various industries in the Eurozone. This highlights the threat posed to the automotive industry by the rise of low-cost competitors, and also reflects the market's skepticism about Volkswagen's historic restructuring plans. The plan will cut 100,000 jobs. Analysts said that as exchange-traded funds tracking the index sell off their holdings, the exclusion of the public could increase pressure on their stock prices. According to Stoxx data, a total of 30 ETFs track the Euro Stoxx 50 index, with a total asset size of 59 billion euros; in addition, there are also more than 110,000 active structured products linked to the index, with sales exceeding 68 billion euros. Volkswagen said, “Being included in an index does not change the basic strength of a company.” The company added that although the automotive industry is undergoing the “most significant transformation” in history, VW “remains an attractive investment for investors.”