Peloton to stop making its own bikes, treadmills

By MICHELLE CHAPMAN
AP Business Writer

Peloton will stop making its own interactive stationary bikes and treadmills, outsourcing those duties to a Taiwanese manufacturer as it attempts to revive sales that surged during the pandemic. The New York City company, which recorded its only profitable quarters during the pandemic, is seeking to lower costs. It will suspend manufacturing operations at the Tonic Fitness Technology plant in Taiwan for the rest of the year. Peloton’s strategy was to bring manufacturing inhouse to reduce costs and avoid shipping complications. Sales growth doubled in 2020 and it ramped up production. However, after three profitable quarters in 2020, the height of the pandemic, it began to lose money in the first quarter of 2021.