Peloton To Open Its First US Factory
Despite a horror start to the year, Peloton has announced plans to build its first factory on US soil, with construction beginning in Ohio later this year.
The factory will create around 2,000 jobs, and is expected to be operational in 2023.
“We are thrilled to bring a good portion of our manufacturing to United States soil,” its boss John Foley said.
Peloton produces the bulk of its indoor exercise machines at facilities in Taiwan. It recently acquired American company Precor, who manufacture exercise machines, to keep up with demand caused by shipping issues.
“While we will continue to invest in our Asian manufacturing footprint as well as our existing facilities in the US via our Precor sites, the new Peloton Output Park gives us a massive strategic lever to make sure we have capacity, quality, and economies of scale in our bike and tread product lines”.
After the Peloton Tread+ was linked to the death of a child in March, as well as over 80 separate injuries, the company reduced its projected quarterly revenue for April-June, to AU$1.176 million.
Mass recalls and delayed product releases reduced their expected sales during the current quarter by AU$212 million.
Peloton plans to move into the Australian market this year. A shareholder letter released earlier this month detailed plans to “advance our key strategic priority of international expansion.”
“We will initially offer our Bike and Bike+ products, which will be available through our e-commerce platform and three retail locations in Sydney and Melbourne,” the letter explains.
“Peloton Digital will also be available, and Australian Members will have access to our full library of content, including new classes taught by Australian instructors.”