Peloton expands manufacturing partnership with Taiwanese company

NEW YORK (BRAIN) — Peloton Interactive announced on Tuesday that it will cease all manufacturing activities and expand its relationship with Taiwan’s Rexon Industrial Corp.

The subscription exercise bike company said it was a “natural progression” in its strategy to simplify its supply chain and focus on technology and content.

“We believe this, along with other initiatives, will enable us to continue to reduce the cash burden on the business and increase our flexibility,” said Peloton’s Barry McCarthy, who was named CEO in February. succeeding co-founder John Foley. “By partnering with industry-leading third-party providers, Peloton will be able to focus on what we do best: using technology and content to help our seven million members become the best versions of themselves. “

Rexon will become the primary hardware manufacturer for Peloton’s Bike and Tread product lines. Peloton will also suspend operations at its Tonic Fitness Technology Inc. facility for the remainder of the year. Peloton acquired Tonic in 2019.

Andy Rendich, Peloton’s director of supply chain, said Peloton plans to maintain a corporate and manufacturing presence in Taiwan.

“We are delighted to expand our relationship with Peloton as the company reaffirms its commitment to Taiwan,” said Rexon CEO Rex Wang. “For years, Rexon has worked side-by-side with Peloton to produce the hardware behind its iconic, industry-leading products. We are grateful for the opportunity to play an even greater role in making the company and we look forward to continuing our collaboration in the future.”

Peloton has seen a drop in sales as a result of the pandemic. To cut costs, the company announced in February that it was scrapping plans to expand domestic manufacturing and cut 2,800 jobs worldwide.

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