A Peloton representative told the Post that during pre-delivery inspections in September 2021, an inspector at a factory in Cologne, Germany, discovered symptoms of “superficial rust” on the inner tubes of some bike components.
“Cosmetic oxidation” has happened on non-visual components of around 6,000 exercise bikes in circulation, according to the manufacturer.
According to a Peloton spokesman, “our internal testing, based on industry standards, determined the aesthetic oxidation issue would have no influence on a Bike’s performance, quality, durability, reliability, or the overall Member experience.” “We also created a regular rework process for products in inventory to fix this cosmetic issue in the aforementioned non-visible sections,” says the company.
Peloton has “not discovered evidence or heard Member complaints that this specific issue has created a problem,” according to the spokesman, and will try to handle any difficulties that occur, including possible bike replacements.
During a period of turmoil at Peloton, a damaging report on the alleged sale of rusted bikes surfaced.
Demand for Peloton bikes and treadmills has fallen significantly since the COVID-19 pandemic’s early days. Due to a backlog of inventory, Peloton had to scale back production of new equipment as a result of the slowdown.
Peloton co-founder John Foley, whose leadership garnered severe criticism, announced earlier this month that he will stand down as CEO and shift to executive chairman.
At the same time, the corporation let off around 20% of its corporate staff, or 2,800 people, and shelved plans for a $400 million facility in Ohio. According to Peloton, the improvements will save $800 million each year in the long run.
New Peloton CEO Barry McCarthy claimed the job layoffs were unavoidable owing to the company’s “unsustainable” financial realities in an email to staff.