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

[IDemo]

Source: New York Times

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.

Read more: http://www.nytimes.com/2015/01/07/nyregion/mercedes-benz-usa-to-move-headquarters-from-new-jersey-to-georgia.html?_r=0

[George II]

1. And where was Governor Christie when this final decision was made?

Hob-nobbing in Dallas with his "personal friend" at a football game. BUT, he did get his buddy a nice multimillion dollar contract with the Port Authority!

[mountain grammy]

3. Maybe he can get them to move the Cowboys franchise to New Jersey..

[George II]

7. I'd prefer seeing Christie move to Texas, where he'd be more comfortable with the people...

...down there, and we in the Northeast would be more comfortable with him being 2000 miles away.

[hack89]

2. Rhode Island has a similar problem

very hostile to businesses so consequently they don't come here.

[brentspeak]

24. Right wingers do tend to spout the same horse$hit

about northeastern states being "very hostile to business".

Though I imagine right wingers posting on a Democratic website are careful not to express how much they want states to enact "right to work" laws, lower corporate tax rates (though they're already low), lower high income tax rates (already low), lower the minimum wage, and repeal environmental laws.

[hack89]

26. Not every state - just Rhode Island. Massachusetts is very business friendly.

We have the highest unemployment rate (or very close too) in the country for several years while we lag every other New England state in economic growth.

Our problem is that Massachusetts has done some of things you decry, especially in lowering tax rates - we can't compete with them. Because we are such a small state, a company can move ten miles into Massachusetts, retain their customers and enjoy lower tax rates.

Our big problem is not unions, environmental laws or the minimum wages. It is a bloated and cumbersome bureaucracy renown for inefficiency. It takes forever to get needed inspections, licenses and permits.

Unions are somewhat irrelevant to the discussion because they were decimated when Rhode Island's manufacturing base disappeared over the last 20 years - there are simply not that many union jobs outside of the public employee unions.

[Spitfire of ATJ]

4. Of course PART of that "cost of doing business" is the heating bill for the factory.

[Recursion]

10. This isn't a factory, though. It's the headquarters

Their manufacturing plant is in Tuscaloosa (they had a plant in Hampton, VA, but closed it). I'm curious how much "savings" they can actually get from a headquarters move.

[Spitfire of ATJ]

13. Maybe they're getting out of Dodge before a bribe surfaces.

[Recursion]

14. Interesting point (nt)

[gladium et scutum]

16. The Hampton Plant

assembled only trucks.

[One_Life_To_Give]

17. $10 million per yer?

If the cost of living adjustment averaged 10K per employee. Housing is about half price in Atlanta vs Bergen County. Payscale estimates as an employee you only need 70% of what you made in Bergen country to keep the same standard of living.

[hedgehog]

19. I don't know about Bergen County, but I do know that people

who transferred to our Georgia plant ended up putting their kids into private school because the local schools were so bad. You get what you pay for, sometimes.

[KamaAina]

5. There are no bridges of any consequence in Georgia.

It's much easier to test-drive a Mercedes when you aren't stuck in 5mph bridge traffic.

[AngryDem001]

6. hahahaha!

[alp227]

8. it's the race to the bottom once again.

funny thing is that if MB thought NJ was "over-regulated", Germany makes NJ look like Somalia. because workers' rights are VERY strong in Germany. as thom hartmann says, corporate boards in germany are required to have half of the board repped by labor. see: https://en.wikipedia.org/wiki/Codetermination_in_Germany

but the fact that low regulation states get businesses away from the progressive states hurts the workers while helping those on top. i heard this segment on BBC World Service recently about Texas "business friendly" climate, and they interviewed this jail guard who said this low tax thing has gone too far.

[Spitfire of ATJ]

15. In Germany a member of the government sits on the board to see to it they aren't crooks.

[Recursion]

9. Interesting -- that's the HQ, not a factory

Their US plant is already in Alabama (which this will move them closer to). I wonder how much lower white collar salaries really are in GA than in NJ.

[cstanleytech]

12. Well let me put it this way my brother with twenty plus years of experience

as an assistant produce manager who was fired along with others by his old employer (Bi-LO) so they could hire more part timers was at the time making just under 13 bucks an hour and had not seen a race over 5 cents in 6 years at the time and no he is barely making 10 bucks an hour working part time at Publix.
Mind you it beats Walmart who offered him a dollar less than that to be a produce manager at one of their mini walmarts which imo he rightly turned down because they were low balling him big time.

[BronxBoy]

20. Add to that the major cuts they made to education down here

and you have to wonder what exactly is driving some of these business decisions. There was a pretty detailed article published the other day about why Georgia is lagging behind in job creation. I live down here and had no idea that the state gutted most funding to technical colleges. Apparently there are also some issues with the Hope scholarship as well. Seems the state would be interested in making sure they have an educated workforce. Shit wages can't possibly make up for everything

[Blue_Tires]

22. Georgia probably offered them a huge tax break

I remember Nissan moving from L.A. to Nashville being a monumental WTF? at the time, but the offer was just too sweet to pass up...

and FWIW, Porsche NA has been headquartered in Sandy Springs for years now...

[Recursion]

23. We should really just tax corporations federally and then remit a block grant to the states

Because the race to the bottom is very damaging

[cstanleytech]

11. *shakes head* They are moving to Georgia?? Hell I want to leave the state but sadly I am

trapped here.

[Sparhawk60]

18. Early Release?

Maybe with good behavior, the warden will grant you an early release.

[KeepItReal]

21. Not "taxes", Christie... "Atlanta is a premier city" says MBUSA

Montvale, New Jersey is ok...I've been there. But it is not NYC proper, nor ATL.

Plus Mercedes wants to be closer to it's manufacturing facilities in the Southeast.

They didn't run from taxes, Christie, they ran to a more desirable location - the Atlanta area.

Plus irony of ironies, Georgia is a "Right to Work" state...which Republicans like Christie should be all for.

[Xithras]

25. I'm sure that taxes were at least part of it.

The effective corporate tax rate in NJ is 9.36%. In Georgia it's 6%. The move cuts MBUSA's state tax bill by over 30%. And that's without even looking at whatever sweetheart tax deals they were offered on top of that. There's no way that the tax savings wasn't a substantial part of their decision.