VW ejected from European blue-chip index in blow to crisis-hit carmaker

Volkswagen has been ejected from the Euro Stoxx 50 index for the first time in 15 years following a steep decline in valuation that pushed its shares to a 16-year low. Index provider Stoxx announced the exclusion as part of its regular review, also removing Dutch information services company Wolters Kluwer, while adding Finnish network provider Nokia and French utility Engie. The removal underscores deepening headwinds for European carmakers, who are confronting aggressive competition from low-cost Chinese electric vehicle manufacturers, falling sales in China, potential US tariffs, and high restructuring costs. VW's market capitalization has dropped to €38bn despite €322bn in annual revenue, leaving BMW, Mercedes-Benz, and Ferrari as the only remaining auto manufacturers in the Euro Stoxx 50. Market analysts anticipate further selling pressure on Volkswagen's stock as index-tracking funds rebalance their holdings. Approximately 30 exchange traded funds managing €59bn in assets passively replicate the Euro Stoxx 50, alongside €68bn in linked structured products, signaling potential institutional capital outflows from the German automaker.