Peloton to exit in-house manufacturing of its bike, tread products (updated)

Rexon Industrial

12/07/2022 11:49

(Adds details, context)
    July 12 (Reuters) - Exercise equipment maker Peloton
Interactive  PTON.O  said on Tuesday it will cease to
manufacture its bike and tread products in-house and hire a
third-party manufacturer in an effort to simplify its supply
chain and optimize its cost structure. 
    Shares of Peloton were down 1.8% premarket after the company
said Taiwan-based Rexon Industrial Corp  1515.TW  will become
the primary manufacturer of the hardware for Peloton's bike and
tread product lines.
    Peloton will be suspending operations at its Tonic Fitness
Technology Inc facility through the remainder of 2022, the
company said.  

 (Reporting by Kannaki Deka in Bengaluru; Editing by Anil
D'Silva and Shinjini Ganguli)
 ((Kannaki.Deka@thomsonreuters.com;))