Peloton Plans To Build First US Factory Amid Supply Chain Disruptions
Peloton recovered some losses, last down about 2% after the company said it would build its first factory in the US.
CNBC’s Carl Quintanilla has more on the first US Peloton factory.
* PELOTON TO BUILD FIRST U.S. FACTORY
— Carl Quintanilla (@carlquintanilla) May 24, 2021
Peloton’s popularity exploded during the virus pandemic of 2020 when people ditched gyms for $2,000-plus bikes and treadmills.
But some customers have been outraged because the company’s products have been delayed due to supply disruptions. Mainly port congestion and surging sales overwhelmed its supply chain.
CEO John Foley said in a recent earnings call that the company would invest $100 million to increase delivery times for its products, acknowledging supply chain woes. Foley noted West Coast port congestion was a significant problem.
“West Coast port delays and COVID-related delivery challenges have prevented us from returning to our normal order-to-delivery wait times and unfortunately forced us to reschedule many deliveries,” Foley told investors. “To address this issue, we will continue to invest heavily in systems, teams and manufacturing capabilities to ensure we don’t disappoint our customers going forward.”
To do this, Peloton is bringing some production Stateside with factory output expected to begin in 2023.
Mon, 05/24/2021 – 13:21