Some major news shook up the corporate side of the automobile industry when Mercedes-Benz announced to be moving to Georgia from New Jersey, after 43 years of operation in the affluent suburb of Montvale.
This was due to the fact that Atlanta present some enticing factors, such as quality of life, an improving education system, a competitive job market, strong infrastructure and low costs. Additionally, they’d be closer to their huge manufacturing plant in Alabama, where their line of crossover SUVs have been built since the birth of the M-Class in the 1990s.
Now, it seems Mercedes-Benz’s parent company, Daimler, whose headquarters are also in New Jersey, will be moving to Michigan. The move was announced by Michigan’s Governor, Rick Snyder, during the Frankfurt Motor Show.
Daimler AG of North America is currently located in Park Ridge, NJ, a town neighboring Montvale, which is where Mercedes-Benz of North America’s soon-to-be old location sits, right next to the Garden State Parkway.
The decision for Daimler to relocate to Michigan is supported by the preexistence of other Daimler offices in the Great Lakes state, such as a major research and development facility in Ann Arbor. Also, New Jersey’s current tax system isn’t much of a reason for them to stick around, similarly with Mercedes-Benz USA.
For the press statement, check it out below.
Gov. Snyder in Germany: Daimler North America moving headquarters to Michigan
State opens Michigan Europe Center to promote trade and investment
Wednesday, Sept. 16, 2015
FRANKFURT – Daimler North America Corporation, the holding company for all of the company’s business units in the United States, will move its headquarters to Michigan from New Jersey, Gov. Rick Snyder announced as he completed an investment mission trip to Japan and Germany.
“Michigan is the world’s automotive leader, and Daimler’s decision to increase its presence in state is another indication that we intend to hold that position for generations to come,” Snyder said. “This company has long been a valued member of our business community. Michigan is leading the United States in creating new auto jobs and our leadership extends across all parts of the industry — manufacturing, R&D, engineering and technology development.”
After meeting with Daimler executives at the 66th Frankfurt Auto Show, Snyder said the headquarters relocation will bring 30 jobs to Michigan in central office functions including treasury, legal, accounting and executive staff.
Daimler is an historic automaker with roots tracing back to the very invention of the car. Today it manufactures the premium Mercedes-Benz line of vehicles. Daimler’s Michigan operations currently include Mercedes-Benz Financial Services headquarters in Farmington Hills, Detroit Diesel in Redford Township, and Mercedes-Benz Research and Development in Redford and Ann Arbor.
Snyder also announced Michigan is expanding its international presence with the opening of a Michigan Europe Center to promote trade and export development between the state and European markets.
“Having a European center will help Michigan businesses by expanding and strengthening partnerships and business opportunities between our state and European nations,” Snyder said. “This new venture will help promote Michigan made-products while spurring investment to enhance our engagement in the $17.6 trillion European market, creating more and better jobs here at home.”
With offices in Berlin and London, the center will promote and assist export trade development. Teams of in-market specialists will assist Michigan companies with research, market entry strategy, matchmaking, regulatory issues and trade mission meeting programs. With an office in Europe, Michigan small to medium enterprises will have easier access to customers in the 28 European Union countries.
During his two-day visit to the Frankfurt Auto Show, Snyder met with top executives of leading automotive supply chain companies and European parts manufacturers, delivering the message that Michigan is the premier automotive business location in North America.
German business relationships with Michigan traditionally have been strong, and state business leaders and economists say the potential growth opportunities for Michigan are substantial.
The announcements cap a 16,000-plus mile journey that took Snyder to meetings with automotive parts manufacturers and suppliers companies in Germany and Japan.
During two days at the Frankfurt Auto Show, Snyder met with executives of 60 auto supplier companies that have their American headquarters in Michigan.
Snyder participated in the signature event of the Frankfurt show hosted by the German Association of the Automotive Industry, which represents more than 620 businesses in vehicle and automotive components production. The German auto industry employs about 775,000 people directly, about the same number as the United States.
Since Snyder took office in 2011, Michigan has attracted $1.064 billion in new investments from Japanese companies and $1.136 billion from German businesses. Other missions led by Snyder or Lt. Gov. Brian Calley have included China, South Korea, Canada, Italy, the Netherlands, Brazil, Mexico, Israel, Chile, and Columbia.
– By: Chris Chin