What’s happening with the Wood County Peloton plant?
A spokesman for Governor DeWine says the project is still on track.
TOLEDO, Ohio (WTVG) - There are questions about the future of a planned Peloton factory in Wood County, the company’s first American facility. This comes amid reports of price hikes on some products and possible production slowdowns. Company leaders also told investors peloton will likely lose more money than it expected this fiscal year.
The company initially said the Troy Township facility would create more than 2,000 jobs and Peloton will invest about $400 million to build it. The new facility is expected to generate about $138 million in annual payroll and is scheduled to be up and running next year.
The company hit high gear during the pandemic because a lot of people weren’t able to hit the gym. Sales of the bikes and treadmills were up significantly and so were subscriptions for online, interactive classes. But as gyms have re-opened, sales have dropped off. Experts say people are also starting to spend money on other things, like travel and restaurants.
Peloton CEO John Foley acknowledged Thursday that the company is “considering all options” — including layoffs and production curbs — after a report that the fitness firm has stopped manufacturing its bikes and treadmills sent shares crashing. His statement did not reference any specific report, but said “rumors that we are halting all production of bikes and treads” were “false.” Foley added, “We are resetting our production levels for sustainable growth.”
We reached out to Governor DeWine’s office and his Press Secretary gave us this statement. “While we are monitoring the news regarding Peloton, the company continues to move forward with construction in northwest Ohio of its first U.S. manufacturing facility.”
We also reached out to Peloton for comment Thursday, and have not heard back yet.
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