Mercedes-Benz USA (MBUSA), currently headquartered in Montvale, New Jersey, will be closing up shop and relocating in Atlanta, according to a statement released by Mercedes-Benz.
MBUSA President and Chief Executive Officer Stephen Cannon and Georgia’s Governor Nathan Deal announced the specifics of the transition during a Feb. 3 press conference, according to the statement.
Deal said the new headquarters will be constructed in Sandy Springs and he anticipates for the luxury automotive company to be beneficial to Georgia’s economy, according to the statement.
“Mercedes-Benz USA’s planned headquarters location in Sandy Springs is great for the city, metro Atlanta and for the entire state of Georgia,” he said at the conference.
Cannon said the metro Atlanta region was carefully chosen among other prospective cities as the destination for the headquarters, according to the statement.
“Mercedes-Benz is a marquis brand which deserves a marquis setting,” he said at the conference.
Donna Boland, manager of corporate communications for MBUSA, said the company made the decision after narrowing their choices down to Raleigh, Dallas and Atlanta.
“We wanted a place that would be image commensurate for the brand — a dynamic growth environment that parallels what we expect to be doing with the brand,” she said.
Atlanta is the perfect location to help expand and improve the company, according to Cannon during the conference.
“Our ambition is to be more than just a great car company,” he said. “We want to be among the best companies in the world and Atlanta will serve as the perfect foundation to foster that ambition for the future.”
Deal said Georgia’s economic climate is well suited for Mercedes’ influx of business, according to a Jan. 13 release from the governor’s office.
“Georgia is home to many growing, globally connected businesses, due in part to our top ranked economic environment that has made us the No. 1 state for business three times over,” he said.
Job creation
Merry H. Hipp, deputy director of communications for Deal, said Mercedes’ investment in these plans will yield opportunities in the job market.
“This new venture will create at least 800 jobs and it represents an investment of $75 million,” she said. “Mercedes’ motto is ‘The Best or Nothing.’ The company that accepts nothing but the best chose Georgia and it speaks volumes to what we have to offer.”
Hipp also said Deal is adamant about continuously creating occupational opportunities.
“Gov. Deal’s top priority has always been job creation,” she said. “…More than 325,000 new private sector jobs have been created since Gov. Deal took office.”
Deal said Mercedes Benz’s popularity will help usher in more business to the state’s automotive industry, according to the Jan. 13 release.
“With its international name recognition and unmatched reputation for quality, Mercedes-Benz USA’s decision to move to Georgia is simply a home run for the state,” he said. “I look forward to building upon this new partnership and adding Mercedes-Benz to the state’s already impressive automotive sector.”
State government subsidies
Stefanie Harper, director of communications for the Georgia Department of Economic Development, said the department offered MBUSA $23 million in state incentives based on the creation of new jobs and Mercedes’ investment in the state.
“The total estimated cost savings and cost avoidances is $23,312,500,” she said.
She also said the total is comprised of multiple economic benefits including a regional economic business assistance (REBA) grant.
“A REBA grant was offered which is given to the community for project/site development. In this case $6 million will be awarded to the Development Authority of Fulton County,” Harper said.
A portion of the total was an accumulation of tax credits for Mercedes-Benz, according to Harper.
“Mercedes is eligible for the Sales & Use Tax Exemption on Construction Materials which is 7 percent of qualified expenditures,” she said. “Mercedes is also eligible for the job tax credit (150 jobs qualify) and quality job tax credit (800 jobs qualify at $4,000/job). These credits are awarded to a company when the actual jobs are created in Georgia.”
Boland said the subsidies are just ‘icing on the cake’ and had little to do with MBUSA’s decision.
“We were not just looking for the least expensive place to do business,“ she said. “Incentives were not the deciding factor. In fact, they weren’t a major factor.”
Ideal timing for Atlanta
MBUSA plans to operate in Georgia by July out of an office complex in Dunwoody while the new facility is being constructed in Sandy Springs, according to the Feb. 3 statement.
MBUSA said in the release that the company had recorded their best sales in January to date, beating January 2014 sales by nine percent with 24,619 units moved.
Cannon said this is a great way to start off the new year, according to the statement.
“Our product offensive continues in 2015,” he said. “Stay tuned.”
Cannon also said his future strategy for MBUSA entails marketing the Mercedes brand to a younger audience so he can establish lifelong relationships with loyal customers, according to a statement released by Bixler Consulting Group.
Mercedes among millennials
Hipp said the governor anticipates Mercedes-Benz’s relocation will create professional openings for more students.
“The governor realizes that Georgia State students and college students everywhere are looking for high-quality, high-paying jobs after they graduate,” she said. “And with names like Kia, Porsche and now Mercedes in Georgia, our state will have more opportunities for Georgians, especially college students as they enter the job market.”
Boland said Mercedes will seek out professionals with various administrative skillsets.
“There will be jobs in marketing, information technology, engineering and human resources,” she said.
Boland also said she believes Mercedes-Benz will reach out to schools and students to offer financial aid once MBUSA is situated at the new headquarters.
“I’m sure we will [offer scholarships/grants], but its too early in the process,” she said. “Right now we have… collected thousands of resumes already… [Next] we will look into additional outreach and once we get settled in Atlanta, we will absolutely be interacting with the colleges and universities.”
