Volkswagen leaves Euro Stoxx 50 after cutting margin to 1%

Volkswagen shares fell 0.5% in mid-morning trading on September 21, 2026, extending an 8.3% drop from Friday. The decline followed a profit warning in which the German carmaker cut its expected operating return on sales to 1%, down from an earlier forecast of 4% to 5.5%.

The company pointed to an impairment linked to its holding in Porsche, restructuring expenses, and worsening market conditions, especially in China. It also cited an accelerated demand shift toward battery-electric vehicles that has left the Audi and Volkswagen Passenger Cars brands trailing original expectations.

Volkswagen was also removed from the Euro Stoxx 50 blue-chip index on Monday, replaced by Finland's Nokia. The stock has dropped 27.5% this year and trades near its lowest level since 2010. The drop comes despite approval earlier this month for a restructuring plan that will eliminate 100,000 jobs.

Deutsche Bank analysts noted that while the warning appears severe, it overstates the operational slowdown. They highlighted that 10 billion euros in one-off effects are hitting this year's earnings, while underlying margins stay near 4% and cash generation remains intact.