{"id":622810,"date":"2026-09-21T11:50:14","date_gmt":"2026-09-21T11:50:14","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/622810\/"},"modified":"2026-09-21T11:50:14","modified_gmt":"2026-09-21T11:50:14","slug":"volkswagens-latest-profit-warning-compounds-exit-from-blue-chip-index","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/622810\/","title":{"rendered":"Volkswagen’s latest profit warning compounds exit from blue-chip index"},"content":{"rendered":"

\"Volkswagen’s<\/p>\n

Volkswagen<\/a> shares dipped on Monday after another profit warning issued by the embattled German carmaker was followed by its departure from Europe’s blue-chip index. <\/p>\n

Shares were 0.5% lower in mid-morning deals, extending Friday’s 8.3% decline after Volkswagen downgraded its expected operating return on sales to 1%, from a previous forecast of 4% to 5.5%. It blamed an impairment related to its large holding in Porsche<\/a>, a “further deterioration” in the market environment \u2014 particularly in China \u2014 and restructuring expenses.<\/p>\n

“An accelerated shift in demand in favor of battery-electric vehicles … will lead to developments falling short of original expectations, especially for the Audi and Volkswagen Passenger Cars brands,” the company added.<\/p>\n

Separately, Volkswagen was ejected from the Euro Stoxx 50<\/a> on Monday, a move announced earlier this month as part of the index’s annual update to reflect the euro area’s biggest companies across major sectors. <\/p>\n

Volkswagen’s share price has fallen 27.5% this year and is currently near its lowest level since 2010.<\/p>\n

Stock Chart IconStock chart icon\"hide<\/p>\n

VW share price.<\/p>\n

That is despite the approval earlier this month of the next stage of a major restructure and streamlining effort that will cut 100,000 jobs<\/a> as Volkswagen grapples with waning profits, Chinese competitors, tariff complications and the electric vehicle transition. <\/p>\n

Deutsche Bank analysts said Monday that while the latest profit warning “initially looks severe,” it “significantly overstates the deterioration in the underlying business.”<\/p>\n

The update<\/a> includes 10 billion euros in one-off effects that will hit earnings this year, but underlying margins remain at around 4% and cash generation remains intact, Deutsche added in a note.<\/p>\n

But Volkswagen’s Euro Stoxx 50 exit reflects the struggles facing Europe’s autos sector, which has been battered in recent years<\/a> by higher costs, intensifying global competition and a struggle to meet fast-changing consumer demand for EVs and hybrids. <\/p>\n

Jeep and Dodge-maker Stellantis<\/a> fell out of the blue-chip index a year ago amid its own challenges and restructuring. <\/a><\/p>\n

Volkswagen was replaced in the Euro Stoxx 50 by Finland’s Nokia, which is seeing a huge boost from AI-related growth thanks to its key role in data center connectivity.<\/p>\n

<\/a>‘Anything but autos’: Can defense save Europe\u2019s ailing car industry?<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Volkswagen shares dipped on Monday after another profit warning issued by the embattled German carmaker was followed by…\n","protected":false},"author":2,"featured_media":622811,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[7897,941,114,357,281590,85,46,190,68175,66440,49412,13212,5657],"class_list":["post-622810","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-autos","tag-breaking-news-markets","tag-business","tag-business-news","tag-euro-stoxx-50-index","tag-il","tag-israel","tag-markets","tag-nokia-corp","tag-nokia-oyj","tag-porsche-ag","tag-stellantis-nv","tag-volkswagen-ag"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/622810","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=622810"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/622810\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/622811"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=622810"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=622810"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=622810"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}