Noticeably over the years, the Southeast has emerged as a mecca for the automotive industry, and Georgia is at the center. The Peach State is home to the
relatively new General Motors technology center, Kia Motors manufacturing
facility and Porsche’s North American headquarters.
But the automotive brand seemingly dominating the cultural and economic
center of the South is now Mercedes-Benz. The luxury car maker made a
major business shift when it moved its $100 million U.S. headquarters from
Montvale, NJ to Atlanta, GA in 2015. The company also announced earlier
this year that it would bear naming rights to the city’s new multi-purpose
stadium set to open in 2017.
a drive Down South
Written by: Farren Davis
It’s hard to ignore the stream of activity flowing into the Atlanta area from the
luxury car maker all within a year.
So why the attraction to Atlanta? And why now?
Well, there are a number of factors.
For starters, there’s the obvious reason - money. The topic of tax credits and
incentives as it relates to the Mercedes-Benz USA headquarters’ move has
generated a lot of buzz. According to a letter addressed to Mercedes from
the commissioner of the Georgia Department of Economic Development,
Christopher M. Carr, Georgia offered $23.3 million of “cost savings” and cost
avoidances. And over $17 million of that sum can be attributed to five-year
tax credits provided by the state in exchange for every new job brought to
Georgia (as reviewed by The Wall Street Journal).
“Atlanta offers all these
things that matter to us
outside of work, such
as high quality of life,
terrific schools and
wonderful cultural and
recreational activities.”
-Steve Cannon,
former Mercedes-Benz CEO
The Wall Street Journal also reported that a partial tax exemption for construction needed to build the facility and $6 million in development funds
were other factors instrumental in the company’s decision to relocate.
Additionally, Mercedes recognized a chance to further develop their already
flourishing brand. According to Deputy Commissioner of Global Commerce
for the GDED Tom Croteau, the move offered a substantial opportunity for
even more growth for the company. Croteau told Autoblog, “They (Mercedes-Benz) put themselves in a spot on the north side where millennials can
live in the city, and people can live in the northern suburbs and raise a family.
When you combine that with the business aspect of a lower-cost environment,
that’s what we (Georgia) were able to provide them, along with a long-term
commitment to support them however we can.”