Mercedes to Move U.S. Headquarters From New Jersey to Georgia

[cpzilliacus]

N.Y. Times: Mercedes to Move U.S. Headquarters From New Jersey to Georgia

In the latest blow to New Jersey, which is still staggering from the recession, Mercedes-Benz USA said on Tuesday that it would move its headquarters to Georgia from Montvale, N.J.

Mercedes, the German automaker, is the second-largest corporate employer in Montvale and one of the largest in Bergen County. The company said that the move, scheduled to begin in July, would affect about 1,000 jobs.

State officials attempted to dissuade executives of the automaker by offering "sizable"  financial incentives to keep its headquarters in the state, said Assemblywoman Holly Schepisi, a Republican whose district includes Montvale. After turning down that undisclosed offer, Mercedes will join other large companies closing operations in New Jersey and moving jobs to other states, usually in pursuit of lower costs.

"Mercedes USA made one thing very clear about its decision to leave – the cost of doing business and the tax environment is just too high here to be competitive with a state like Georgia,"  said Michael Drewniak, a spokesman for Gov. Chris Christie.

[Duke87]

There has been a lot of southerly movement of both people and companies motivated not only by lower taxes but also by looser regulations and nicer weather. It is a boon for the southeast and something that slowly chips away at the northeast.

I do feel like in the long term it may be a bit of a caucus race, though. As companies move south seeking lower taxes and looser regulations, individuals seeking jobs follow them and these individuals from the northeast are likely more liberal. As they move south, they will change the face of southern politics (North Carolina has already become a marginally blue state) and tip governments in favor of higher taxes and tighter regulations... which may eventually encourage companies to move on yet again.

So, news from the year 2065: Mercedes relocates to North Dakota seeking to escape crushing taxes in Georgia.

[Pete from Boston]

The Record's article on this also cited Atlanta's most-in-the-nation international flights, important to a German/global company like Mercedes.

It's been a tough time for that area.  In the 1970s and 1980s, New York was too complicated and companies were moving out there steadily, building corporate campuses where orchards previously stood and turning sleepy bedroom communities into high-income destination addresses (simultaneously pretty much ending agriculture in Bergen County).  Now telecommuting and a revived workforce in Manhattan seem to be taking their toll.  Park Ridge has lost Hertz and much of Sony, Montvale has lost Mercedes, Upper Saddle River has lost Pearson (formerly Prentice-Hall).

[BamaZeus]

Don't forget that Mercedes' factory is in Vance, AL, about 3 hours drive west on I-20.  It makes sense to move headquarters closer to the facility.

[Henry]

The Record's article on this also cited Atlanta's most-in-the-nation international flights, important to a German/global company like Mercedes.

It's been a tough time for that area.  In the 1970s and 1980s, New York was too complicated and companies were moving out there steadily, building corporate campuses where orchards previously stood and turning sleepy bedroom communities into high-income destination addresses (simultaneously pretty much ending agriculture in Bergen County).  Now telecommuting and a revived workforce in Manhattan seem to be taking their toll.  Park Ridge has lost Hertz and much of Sony, Montvale has lost Mercedes, Upper Saddle River has lost Pearson (formerly Prentice-Hall).

Seeing that Atlanta has one of the largest airports in the world, I say it only makes sense that a world-class company like Mercedes-Benz is moving there.

As bad as business in New York has been lately, it has already lined up a replacement in Cadillac (which GM says will be functioning as an independent division from now on), so that balances it out.