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How Atlanta landed Mercedes-Benz
Fri, Jan 16 2015The first phone call came last spring. An international real estate company had a high-profile client that wanted to relocate its North American headquarters. The client, whose identity was confidential, narrowed the list of prospective sites to Texas, North Carolina and Georgia. Would Georgia officials be interested in a discussion? Behind the scenes, they worked for months to lure the company, touting lower housing prices and a relaxed pace of life. They arranged interviews with CEOs of other companies in Atlanta who could speak about the area's business climate and they augmented negotiations with key executives from a utility company and Atlanta-Hartsfield Airport. Ultimately, they were also offered a reported $40 to $50 million in tax incentives. Secrecy was vital. The intermediary and officials with the Georgia Department of Economic Development gave the project a code name that changed three times throughout the summer and fall, so that only a few people had access to the most basic information. It was called Operation Eagle. It was only in September that the Georgia officials learned the identity of the client, Mercedes-Benz, and only last week that Operation Eagle bore fruit when the company publicly announced it would relocate its North American headquarters from Montvale, NJ, to the north side of Atlanta. "They put themselves in a spot on the north side where millennials can live in the city, and people can live in the northern suburbs and raise a family," Tom Croteau, deputy commissioner of global commerce for the GDED, tells Autoblog. "And when you combine that with the business aspect of a lower-cost environment, that's what we were able to provide them, along with a long-term commitment to support them however we can." In the move, the company benefits from a location that's closer to a growing base of suppliers that work with German car companies in the Southeast, as well as closer proximity to ports in Brunswick, GA, that are some of the busiest in the country. Mercedes-Benz will bring 800 to 1,000 jobs to the area. In addition to the employment, Georgia benefits from another notch in its automotive belt. Atlanta is already home to Porsche's North American headquarters. Kia Motors has a major manufacturing facility in West Point, GA, and General Motors opened an information technology center in Atlanta two years ago that employs roughly 1,000 workers.
Mercedes out to defend its F1 crown with new W06 Hybrid Silver Arrow
Sun, Feb 1 2015They say there's only one way to go when you're on top, and that's down. That's the direction in which every other team on the Formula One grid will be trying to push Mercedes this season, but the defending champions will be doing their best to stay on top. What you see here is the embodiment of that effort. After taking pole position at all but one race last season, the checkered flag at all but three and an impressive dozen one-two finishes, the new Mercedes AMG F1 W06 Hybrid will have one heck of an act to follow. In accordance with the only major change to the sporting regulations for 2015, the most obvious difference over last year's W05 is the revised front end, but the team insists it worked hard over the winter to optimize everything underneath that silver and teal bodywork, from the suspension to the turbocharged hybrid power unit and everything in between. One of only two teams (alongside Ferrari) on the grid this season to develop its own engine in-house, the Mercedes PU106A proved practically unbeatable last season. And with engine development all but completely frozen in the off-season, its innovations are likely to prove just as insurmountable this year. But as team principal Toto Wolff puts it, in quoting Babe Ruth, "Yesterday's home runs don't win today's games." While nothing's for certain in one of the world's the most competitive arenas, chances are still high that Mercedes will continue to dominate this season just as it did the last. The most gripping battle, then, may very well be waged once again between Lewis Hamilton and Nico Rosberg, whose rivalry started long before either got their start in F1, from karting and up through the ranks of the lower formulae. Though Lewis was just crowned world champion for the second time, Nico has been with the Mercedes team for longer, has been in F1 for longer and didn't give up on chasing Lewis all of last season – so don't expect him to this year, either. MERCEDES AMG PETRONAS Gets Back to Work with the new F1 W06 Hybrid Silver Arrow Jerez, Feb 01, 2015 The MERCEDES AMG PETRONAS Formula One Team today unveiled its 2015 Formula One World Championship challenger, the F1 W06 Hybrid, ahead of the first day of pre-season testing at the Circuito de Jerez in Spain.
Dealers mobilize to protect their margins from automaker subscription services
Fri, Aug 24 2018Six individual auto brands — Lincoln, Cadillac, Porsche, Mercedes, BMW and Volvo — have established or are trialing a vehicle subscription service in the U.S. Three third-party companies — Flexdrive, Clutch and Carma — run brand-agnostic subscription services. And three automakers — Mercedes-Benz, BMW, and General Motors — have also launched short-term rental services. Dealers, afraid of how these trends might affect their margins, are building political and lawmaking campaigns to protect their revenue streams. So far, three states are investigating automaker subscriptions, and Indiana has banned any such service until next year. It's certain that those three states are the first fronts in a long political and legal battle. Powerful dealer franchise laws mandate the existence of dealers and restrict how automakers are allowed to interact with customers to sell a vehicle. On top of that, Bob Reisner, CEO of Nassau Business Funding & Services, said, "Dealers and their associations are among the strongest political operators in many states. They as a group are difficult for state politicians to vote against." In California earlier this year, the state Assembly debated a bill with wide-ranging provisions to protect against what the California New Car Dealers Association called "inappropriate treatment of dealers by manufacturers." One of those provisions stipulated that subscription services need to go through dealers, but that item got stripped out when dealers and manufacturers agreed to discuss the matter further. In Indiana, Gov. Eric Holcomb signed a moratorium on all subscription programs by dealers or manufacturers until May 1, 2019, to give legislators more time to investigate. Dealers in New Jersey have taken their campaign to the state capitol, asking that the cars in subscription programs get a different classification for registration purposes. Automakers run the current subscription services and own the vehicles. Sign-ups and financial transactions happen online or through apps, leaving dealers to do little more than act as fulfillment centers to various degrees, with little legal recourse as to compensation amounts when they're called on to deliver or service a car. That's a bad base to build on for business owners who've sunk millions of dollars into their operations.