Mercedes-Benz USA to transfer its headquarters from New Jersey to Atlanta

Article by Andrew Christian, on January 9, 2015

Mercedes-Benz USA has decided to transfer its headquarters from New Jersey to Atlanta in a bid to trim costs while hoping it could take advantage of forecasted growth in southern United States. According to Mercedes-Benz USA chief executive Steve Cannon, the carmaker will commence the transfer in June to temporary offices in Atlanta while preparing to build a new headquarters by the end of 2017.

He remarked that the transfer decision was influenced by high costs in New Jersey and by anticipated growth in sales and dealerships in the South, particularly in Atlanta, Houston and Dallas. He cited lower costs in the South as a major factor in the carmaker’s decision to relocate.

He remarked that the “great migration from north to south continues” with companies and customers. Carmakers for the past year have been moving their bases in the US.

For instance, Toyota Motor Corp. is shifting its North American sales, marketing and other corporate operations to suburban Dallas from southern California and the Cincinnati area.

Likewise, Cadillac is shifting its base from Detroit to New York. According to Cannon, Mercedes-Benz has outgrown its current base in New Jersey, and a continued stay in the location would need a significant investment.

Mercedes has been overseeing its US operations in Montvale, NJ, since 1972. Mercedes-Benz has seen its sales, including those of Smart small car and Sprinter van brands, jumped 6.7 percent in 2014 to 366,589 vehicles.

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