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Mercedes Expects 40% of Employees to Move from New Jersey to Atlanta

Motor Trend logo Motor Trend 1/20/2015 Jason Udy

Only about 40 percent of Mercedes-Benz USA’s employees currently located in New Jersey are expected to make the move to the company’s new headquarters in Atlanta, Ga., Automotive News reports. Steve Cannon, CEO of Mercedes-Benz USA, told the news outlet that the estimate is based on similar moves by other companies. Montvale, N.J. has been the German automaker’s U.S. home for more than 40 years.

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The automaker has made offers to employees it wants to make the move from Montvale to Atlanta, but didn’t disclose how many employees received an offer. Employees have until April 15 to get back to the automaker. Currently, there are 1053 employees at Mercedes’ New Jersey location (pictured below).

"We will lose talent, and that is an unfortunate byproduct of a move like this. It will be painful for people who have helped our company," Cannon told Automotive News. "For us, this is an important opportunity for the future."

Mercedes Benz U.S. Headquarters Montvale 1973 Photo© Provided by MotorTrend Mercedes Benz U.S. Headquarters Montvale 1973 Photo Starting in July, employees will begin making the move to a temporary location about a mile from the new site, which will be completed by 2017. The new site will be about two hours from the automaker’s Tuscaloosa, Ala., plant.

Atlanta’s lower cost of living versus Montvale (estimated at 30 percent) will make it “easier to move people from the field force and vice versa," according to Cannon.

"We looked at this as a 50-year decision," said Cannon. “We have outlived the useful life of the building we are in. That building does not support our future growth."

In the interview, the executive also said Mercedes is considering bringing a variant of the next-generation A-Class to the U.S. market to help meet the tightening CAFE standards, which will rise to 54.5 mpg by the 2015 model year. The next A-Class will be built at the upcoming plant in Mexico where the German automaker and Renault-Nissan will build up to 300,000 vehicles a year beginning in 2017.

Source: Automotive News (Subscription Required)

2015 Mercedes Benz C300 4Matic© Provided by MotorTrend 2015 Mercedes Benz C300 4Matic
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