New R&D Center to be established at '1MB' facility in Sandy Springs... Leading the Future of Georgia's Automotive Industry

ATLANTA, Georgia – Governor Brian Kemp announced on Thursday, May 22 (local time), that Mercedes-Benz plans to expand its presence in Georgia and add jobs in the Atlanta metropolitan area. Through this expansion, Mercedes-Benz will add up to 500 jobs and establish a state-of-the-art research and development (R&D) facility at its '1MB' facility in Sandy Springs.

"Georgia is leading the future of mobility and technological innovation, attracting world-class companies like Mercedes-Benz, which are driving the automotive industry," Governor Kemp stated. "We are delighted that this job-creating company, which already has a strong relationship with Georgia, is doubling down on its investment in Georgia and strengthening its presence in the best state for business and opportunity."

According to Mercedes-Benz, approximately 800 people currently work at the '1MB' facility, which opened in 2018. This expansion will accommodate existing sales and financial services teams, as well as corporate positions, at the Sandy Springs facility.

Jason Hoff, CEO of Mercedes-Benz North America, emphasized, "We are grateful to the State of Georgia for their unwavering support in deepening Mercedes-Benz's roots in the Atlanta area. We will bring even more talented team members to this global city. This strengthens our position for continued growth and reaffirms our steadfast commitment to the U.S. market. By bringing our teams closer together, we will be more agile, accelerate time-to-market, and ensure the best customer experience."

 
Georgia's Leap as a 'Mobility Hub' and Mercedes-Benz's Strategic Choice

Mercedes-Benz's expansion of its North American headquarters is more than just corporate growth; it holds significant meaning, aligning with Georgia's future industrial strategy. In recent years, Georgia has accelerated its transformation into a 'mobility hub' by attracting electric vehicle (EV) battery plants and expanding investments from major automakers. Examples include the construction of Hyundai Motor Group Metaplant America (HMGMA) and the battery joint venture plant between SK On and Hyundai Motor, demonstrating Georgia's emergence as a key hub for EV production and related industries.

Mercedes-Benz's establishment of a new R&D facility in Georgia can be interpreted as a strong commitment to accelerating future mobility technology development, in line with these trends. In particular, as the transition to software-defined vehicles (SDVs) accelerates, strengthening automakers' in-house R&D capabilities has become an essential factor. Mercedes-Benz is expected to further enhance its global competitiveness by focusing on developing core future car technologies such as autonomous driving, infotainment, and connectivity through this new R&D facility.

Furthermore, Mercedes-Benz operates a large-scale production base in Alabama, where it produces SUVs and the EQ series of electric vehicles. The expansion of its North American headquarters and the establishment of an R&D facility in Atlanta, Georgia, are analyzed as part of a strategy to create synergy with the production base and further solidify its presence in the North American market. The geographical proximity of the headquarters and R&D facility to the production base can contribute to increased communication and collaboration efficiency, thereby shortening product development and launch times.

 
Georgia's Business-Friendly Environment and Excellent Infrastructure Strengths

Several factors contribute to Georgia's continuous success in attracting investments from global companies like Mercedes-Benz.

Firstly, its business-friendly policies. Georgia fosters a favorable environment for businesses through low corporate tax rates, various tax incentives, and expedited licensing procedures. As indicated by Governor Kemp's remarks, Georgia actively promotes its image as "the best state for business and opportunity."

Secondly, its excellent infrastructure. Hartsfield-Jackson Atlanta International Airport is one of the busiest airports in the world, providing advantageous conditions for logistics and personnel movement. Additionally, Georgia's well-maintained highway network and port facilities contribute to companies' smooth supply chain establishment.

Thirdly, its abundant human resources. A concentration of excellent universities, including Georgia Institute of Technology (Georgia Tech), provides a continuous supply of talent in advanced technology fields. Mercedes-Benz's mention of bringing "even more talented team members" seems to acknowledge the strength of this talent pool.

Fourthly, political stability also plays a crucial role in attracting corporate investment. A stable political environment positively influences companies in formulating long-term business plans and making investment decisions.

 
Future Outlook and Impact on the Regional Economy

Mercedes-Benz's expansion is expected to have a significant ripple effect on Georgia's regional economy. The creation of up to 500 new jobs will invigorate the employment market and contribute to the growth of related industries. In particular, the attraction of R&D personnel, which will include high-income positions, is anticipated to drive qualitative growth in the regional economy.

Moreover, investment from a global company like Mercedes-Benz can lead to a 'trickle-down effect,' encouraging other related companies to establish themselves in Georgia. Ultimately, this will contribute to Georgia's establishment as a true hub for the automotive industry and a cradle of future mobility technology.

Meanwhile, ongoing customer dissatisfaction regarding the Georgia Power electricity rate freeze negotiation, as mentioned by the Georgia Governor, remains a challenge to be addressed. However, overall, Georgia is expected to continue fostering an environment conducive to corporate investment, strengthening its position as a state leading future industries. Mercedes-Benz's current investment aligns with this vision for Georgia, and attention is drawn to what synergies will be created through the collaboration between the two parties moving forward.