Volkswagen drops out of EuroStoxx 50 index for first time in 15 years
Volkswagen lost its place in the EuroStoxx 50 index for the first time in 15 years. This is the EU blue-chip index, which includes the largest companies in various industries – “supersector leaders”, as the index compilers describe it – with the most liquid stocks.
Volkswagen lost its place in the EuroStoxx 50 index for the first time in 15 years. This is the EU blue-chip index, which includes the largest companies in various industries – “supersector leaders”, as the index compilers describe it – with the most liquid stocks. The D index now represents nri car companies - Ferrari, BMW and Mercedes-Benz.
The concern dropped out of EuroStoxx 50 after VW shares fell 5.6% on September 18, to €76.5 - this is at least 16 years. The decline was due to the company's statement that it would have to write off €6 billion due to a reassessment of the value of its Porsche brand. The company reported additional costs due to ongoing restructuring and falling sales in China.
VW's problems have been going on for years. The company is discussing the possibility of closing several plants and plans to cut 100,000 employees. Since the beginning of the year, its shares have fallen by a quarter, and over the past five years - by almost 60%.
Michael Tyndall, senior global car analyst at HSBC, told the FT that VW’s fall from EuroStoxx 50 reflects the “depressive state of the entire sector, given the existential risks it faces.” The European automotive industry faces several challenges, including competition from Chinese companies and declining demand.
Jana Christmas
