The German car company is usually Montvale's second-biggest corporate employer as well as one of the biggest in the entire Bergen Region. Based on Mercedes, this transfer of headquarters, that will start in July, will probably affect around 1, 000 jobs.
New Jersey officials tried to counteract the move of Mercedes simply by offering significant financial rewards in talks with the company's executives. Nevertheless, Mercedes decided to turn down the undisclosed offer created by New Jersey, joining other big companies which have shut down operations in the state and also have moved jobs to other places.
Companies which are leaving New jersey mostly share the similar reason of performing so to pursue cheaper costs for operations.
"Mercedes USA made the one thing very clear about their decision to leave - the price of doing business and also the tax environment is simply too high here to be competitive with a state just like Georgia, " New Jersey Gov. Chris Christie's spokesperson Jordan Drewniak said.
Based on Trenton legislative staff, this administration of Gov. Christie has generously provided tax breaks and incentives worth a complete of almost $1 billion each year to companies within a bid to retain the jobs in the state.
Nevertheless, Mercedes went with the trend of car manufacturers relocating towards the Southeast after it acquired a $50 million incentive package from Georgia to go its headquarters to their state.
"New Jersey has been an excellent home to our United States operations for the first 50 years, but still is today, " Mercedes Benz US CEO and also President Stephen Cannon.
Cannon added that in spite of the efforts of New Jersey, the company decided to help relocate its headquarters to Atlanta to obtain sustainable and profitable efficiencies and also growth for future years.
Reports reveals which Mercedes is considering a place in Sandy Springs, where fellow German car company Porsche's Usa headquarters is also positioned.
The loss of the jobs presented through the headquarters of Mercedes will simply add to New Jersey's struggles since it continues to recover from the recession which hit the usa six years ago. Unemployment in the state was at 6. 4 % in November this past year, which is still higher in comparison to the national rate of 5. 8 %.
Assemblywoman Holly Schepisi said which the effects of the journeying of Mercedes will go beyond the losing of the jobs at the company, as other business which service the company and its employees may also feel the impact.
Source::
This atop story is based on materials provided by the Tech Times and image credit also.
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