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PSA Peugeot Citroen  will be dropped from France's blue chip index CAC 40  the latest in a series of setbacks for Europe's No. 2 automaker by volume.

Peugeot, a founding member of the CAC 40 when the benchmark was created a quarter century ago, will be replaced by Belgian chemicals group Solvay, NYSE Euronext said, with the changes taking effect on September 24.

The demotion from the index means the group will be dropped from the radar screens of exchange-traded funds and index trackers, translating into a fall in liquidity of the stock.



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