Peloton Interactive Announces Starting First US Factory In 2023 - Peloton Interactive (NASDAQ:PTON)

Peloton Interactive Inc PTON plans to build its first dedicated U.S. factory, Peloton Output Park, in Ohio’s Troy Township in 2023 for production ramp-up, reduction of shipping time, new market expansion, and lower price.
The facility will help to fast-track expansion into the European and other new markets, reduce the dominance of Asia manufacturing facilities and improve economies of scale, CEO John Foley said.
Peloton plans to spend $400 million building the facility. It can create around 2,000 local jobs.
The 1-million-square-foot factory will manufacture Peloton Bike, Bike+, and cheaper treadmill and additional products.
Foley expects the facility to cut production costs leading to lower Peloton prices. Local manufacturing is estimated to reduce shipping times.
Peloton will also continue to have Asian factories.
Peloton’s Precor facilities in Washington and North Carolina will start producing smaller quantities of Peloton equipment later in 2021, apart from Precor’s products.
The factory will also be open to the public and will have a showroom.
Peloton had lowered the FY21 revenue guidance to reflect the short-term impact of a treadmill recall.
Price action: PTON shares traded lower by 1.09% at $99.79 on the last check Monday.