# Volkswagen crashes out of Europe's top index

> The German carmaker slashes profit forecasts and loses its place in the Euro Stoxx 50 as the auto sector struggles.
- Title: Volkswagen crashes out of Europe's top index · CNBC | Shortify
- Summary: The German carmaker slashes profit forecasts and loses its place in the Euro Stoxx 50 as the auto sector struggles. Volkswagen cut its profit forecast to one…
- Keywords: volkswagen, euro stoxx 50, profit warning, porsche, electric vehicles, automotive industry, china market, job cuts, business, finance, crashes, Europe's
- Source: CNBC — https://cnbc.com/2026/09/21/volkswagens-latest-profit-warning-compounds-exit-from-blue-chip-index.html
- Author: Jenni Reid
- Published: 2026-09-21T09:56:27+00:00
- Read time: 1 min
- Topics: volkswagen, euro stoxx 50, profit warning, porsche, electric vehicles, automotive industry, china market, job cuts, business, finance
## Volkswagen slashes profit forecast
The German carmaker cut its expected operating return on sales to one percent, down from four to five point five percent.
## Porsche impairment and China slowdown cited
Volkswagen blamed an impairment on its Porsche holding, deteriorating market conditions in China, and restructuring costs for the downgrade.
## EV transition hitting key brands hard
The company said demand shifting to battery-electric vehicles will cause the Audi and Volkswagen Passenger Cars brands to fall short of expectations.

> 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.
## Stock down twenty-seven point five percent this year
Volkswagen shares fell zero point five percent on Monday and have dropped twenty-seven point five percent since the start of the year.
## Ejected from Euro Stoxx 50 index
Volkswagen was removed from Europe's blue-chip index on Monday, replaced by Finland's Nokia as it benefits from AI-related growth.
## Restructure approved despite market turmoil
Volkswagen approved a major restructure cutting one hundred thousand jobs as it grapples with Chinese competitors, tariffs, and the EV transition.
## Key takeaway

Volkswagen cut its profit forecast to one percent from four to five point five percent and was ejected from Europe's blue-chip index, replaced by Nokia.