Mercedes also flees to lower-tax state, shuns CA

Mercedes also flees to lower-tax state, shuns CA

Mercedes SLG5 AMGToyota’s HQ last year fled high-tax California for low-tax Texas. In 2005, Nissan split the Golden State for the Volunteer State, Tennessee, for the same reason.

Now Mercedes is moving its HQ from high-tax New Jersey — basically, California with bad weather and a Republican governor — for Georgia.

The Wall Street Journal reported:

Wooed by lower costs, proximity to a Mercedes-Benz factory and government incentives, the German luxury car maker in July will begin moving about 1,000 U.S. personnel to a temporary facility and later move to Sandy Springs, Ga.

The operation, which includes staff working on the Sprinter van business and the Smart mini car lineup, will permanently move into a new building erected on a 10-acre site in the same city.

Of course, subsidies means everybody else in the state must take up the slack given to a favored company. But the Garden State also dangled subsidies before Mercedes’ eyes. Yet they weren’t enough to compensate for Georgia’s other advantages:

Daimler executives turned down a significant incentive package from New Jersey to keep its U.S. headquarters in Montvale, where it had been running operations since 1972….

John Boyd, principal of the Boyd Company Inc., a Princeton, N.J.-based site selection consultant, said that New Jersey has the country’s most appealing incentives policy in his assessment, but it was outweighed by the cost-savings and convenience of moving to the U.S. South. He said that the move would reduce Mercedes-Benz’s costs, including real estate, energy and property taxes, by about 20%.

California, of course, was in contention for the Mercedes HQ move about as much as North Korea. Energy costs here are high and going much higher because of Gov. Jerry Brown’s push for 50 percent renewable energy by 2020.

Property taxes here generally are low at 1 percent of assessed value, because of Proposition 13. But numerous state and local restrictions on construction have boosted land values to prohibitive levels.

Mercedes still sells a lot of cars out here. We still have the Silicon Valley digital elite, the $100K Pension Club of retired government workers and others who are in the money and can afford an S-Class Sedan or SL65 AMG Roadster.

But otherwise the company, like so many others, shuns our state, depriving us of thousands of middle-class jobs.

9 comments

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  1. Ted
    Ted 8 January, 2015, 16:45

    6 companies have left and 57 came here….Zzzzzzzzzzzzzzzzzzzzz

    Reply this comment
  2. NTHEOC
    NTHEOC 8 January, 2015, 17:52

    Fletcher jones in OC set a record in 2014 and stared their december sales ended being around 400 Benzes sold!!!! Nothing like a FLOURISHING California economy. Again, we are the best and the envy of the Nation!!

    Reply this comment
    • bob
      bob 8 January, 2015, 17:57

      “Again, we are the best and the envy of the Nation!!”

      Go team!

      So that highest poverty rate is looking pretty good right now, too.

      Reply this comment
  3. desmond
    desmond 8 January, 2015, 17:55

    Glad to hear about it. Keep buying, keep extending credit. It is wonderful.

    Reply this comment
  4. Bill Gore
    Bill Gore 9 January, 2015, 07:07

    Leaving New Jersey is a no-brainer. A smelly, toxic, over crowded, super high cost/high tax hell hole governed by the fattest man on earth, the Arch Duke Leto Christie…

    Reply this comment
  5. Bill Gore
    Bill Gore 9 January, 2015, 07:12

    Oops, sorry Dune-heads, I meant to say ” the Baron Harkonen Christie”.

    Reply this comment
  6. NTHEOC
    NTHEOC 10 January, 2015, 08:31

    NEW YORK (MainStreet) — If you’re in the car, truck or SUV-buying business these days, well brother (and sister), business is booming. According to Edmunds.com, 16.8 million new vehicles were sold in 2014, a spike of 11.4% from the previous year.
    The jump marks “a comeback year for the industry,” says John Krafcik, president of TrueCar, a Santa Monica, Calif., online auto sales platform. “Sales volume growth and the popularity of highly profitable vehicle segments — pickups, utilities and luxury vehicles — have been immensely beneficial to automakers’ revenue, and we expect more good news in 2015.”
    ——————————-
    Hahahaha!!!!! Good luck DOOMERS !!!!! [email protected]…..love it

    Reply this comment
  7. desmond
    desmond 10 January, 2015, 17:40

    Wonderful news. Keep on buying, especially on credit. Great time to buy up in housing not just cars. It is a wonderful time to tap the equity in the home to increase your standard of living. Spend, spend, spend.

    Reply this comment
    • Ted
      Ted "Patriot" Steele 10 January, 2015, 19:18

      Desilou–

      I am canning food, stashing water, full prep gear etc,,,,,,,,,,,I am charging nothing because lilke you, I can see all of the clear signs of impending doom,,,,,,,,,,,

      mmmmmmmmmmmmdesi

      Reply this comment

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GeorgiaJohn SeilerMercedesNew Jersey

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