Peloton expands manufacturing partnership with Taiwan firm

NEW YORK (BRAIN) — Peloton Interactive stated Tuesday that it’ll stop all owned manufacturing operations and broaden its relationship with Taiwan’s Rexon Industrial Corp.

The subscription-based train bike firm stated it’s a “pure development” in technique to simplify its provide chain and deal with expertise and content material.

“We imagine that this together with different initiatives will allow us to proceed lowering the money burden on the enterprise and improve our flexibility,” stated Peloton’s Barry McCarthy, who was named CEO in February, succeeding co-founder John Foley. “Partnering with market-leading third-party suppliers, Peloton will be capable of deal with what we do finest: utilizing expertise and content material to assist our seven million members change into the perfect variations of themselves.”

Rexon will change into the first producer of the {hardware} for Peloton’s Bike and Tread product traces. Peloton additionally will droop operations at its Tonic Health Know-how Inc. facility via the rest of the 12 months. Peloton acquired Tonic in 2019.

Peloton Chief Provide Chain Officer Andy Rendich stated Peloton plans to keep up a company and manufacturing presence in Taiwan.

“We’re thrilled to be increasing our relationship with Peloton as the corporate reaffirms its dedication to Taiwan,” stated Rexon CEO Rex Wang. “For years, Rexon has labored facet by facet with Peloton to supply the {hardware} behind its iconic and industry-leading merchandise. We’re grateful for the chance to play a good better position within the firm’s manufacturing and stay up for continued collaboration sooner or later.”

Peloton has skilled declining gross sales popping out of the pandemic. To cut back prices, the corporate introduced in February that it will again off plans to develop home manufacturing and remove 2,800 jobs globally.

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