Login

Harley-Davidson Removed From S&P 500 Index

Harley-Davidson will be removed from the benchmark US index effective June 22, 2020.
Calendar-icon

By Carandbike Team

clock-icon

1 mins read

Calendar-icon

Published on June 17, 2020

Follow us on

google-news-iconWhatsapp-icon
Story

Highlights

  • The S&P 500 has companies like Apple, Amazon & Microsoft
  • Harley-Davidson has a current market cap of $ 3.89 billion
  • A company needs to be worth $ 8.2 billion to be in the S&P 500

Iconic American motorcycle brand Harley-Davidson has been removed from the Dow Jones S&P 500 list, a key benchmark for US stocks. The S&P 500 us considered as a measure of how the American economy is doing and includes 500 large companies like Apple, Microsoft, Amazon, Facebook and JPMorgan Chase which are listed on US stock exchanges. These companies are worth billions of dollars and are considered to be representative of the US economy. And now, Harley-Davidson will no longer be part of the S&P 500 Index, instead, it will be listed in the S&P Midcap 400, a listing of smaller companies.

Also Read: Harley-Davidson Rethinks Global Product Plan

4ub0am9g

Sales of Harley-Davidson motorcycles has been slowing down over the past few years, including in the home market of US

Harley-Davidson currently has a market cap of $3.89 billion, and to get into the S&P 500 Index, a company needs to be worth more than double that, with around $ 8.2 billion to be included in the index. A minor financial hit to Harley-Davidson's stock is expected, since certain investment funds can only invest in S&P 500 companies. Being removed from the S&P 500 index is seen more as a hit to Harley's image, and prestige, which is already in the middle of struggling with falling sales, both in the US and around the world.

Also Read: Harley-Davidson Appoints Jochen Zeitz As President & CEO

g33sl6nc

Sales of heavyweight cruisers from Harley-Davidson is slowing down globally

In May 2020, Harley-Davidson replaced former CEO Matt Levatich with Jochen Zeitz, who is also the chairman of the Harley-Davidson board and former CEO of sporting goods manufacturer Puma. Levatich was replaced after Harley-Davidson's struggles to increase sales continued, with sales in the home market of US slowing down over the past few years. In the face of the global coronavirus pandemic, Harley-Davidson announced in April 2020 that its executive leadership will take a 30 per cent pay cut and most salaried employees in the US will take pay cuts of between 10 per cent and 20 per cent. Harley-Davidson also announced a hiring freeze and said there will be no merit pay increases for 2020.

Calendar-icon

Last Updated on June 17, 2020


Stay updated with automotive news and reviews right at your fingertips through carandbike.com's WhatsApp Channel.

Great Deals on Used Cars

View All Used Cars

Popular Harley-Davidson Models

Explore More