US: Mercedes headquarters relocation brings “talent” loss image

According to Steve Cannon, CEO of Mercedes-Benz USA, judging by previous experiences of other companies, the relocation of the regional headquarters from New Jersey to Atlanta would be followed by only around 40% of the firm’s 1,053 employees.

Cannon said that Mercedes has already previously selected the desired personnel to keep and made relocation offers that expire on April 15, but declined to give any head count or offer tally. Mercedes-Benz’s American unit has been living for more than four decades in its current “home” – in Montvale, N.J., and has started the construction work on a new headquarters in Atlanta, set to be ready by 2017. The executive added that employees willing to relocate are already scheduled move from New Jersey this July into a temporary location very close to the new headquarters’ site. “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,” commented Cannon, adding that Mercedes’ sees the relocation as an important opportunity for the company’s future.

The official explained that Atlanta’s new headquarters would be only two hours away from the sole Mercedes-Benz plant in the US – located in Tuscaloosa, Alabama, which already has a newly established employee immersion center that was opened late in 2014. Over the next few years, at least 26,000 corporate and dealership personnel will go through a two-day immersion program in Mercedes-Benz culture. He also estimated that relocation will be made easier for Mercedes’ employees because the estimated cost of living in the new location is around 30 percent less than Montvale.

Via Automotive News