By Jeff Bennett And Cameron McWhirter 

Mercedes-Benz USA is expected to move its headquarters to the Atlanta area from New Jersey, ending a more than 40-year connection to the state where it employs about 1,000 people.

The announcement could be made as soon as Tuesday, according to two people briefed on the matter. Mercedes-Benz USA, a division of Germany's Daimler AG, has been based in Montvale, N.J., since 1972. Reports of a possible move first surfaced in December.

A company spokesman declined to comment.

A move south would put the luxury car maker's U.S. headquarters much closer to its growing Tuscaloosa, Ala., assembly plant, which has been expanding and is expected to reach an annual output of 300,000 vehicles by 2016.

The move would put company executives close to other major corporate headquarters in Atlanta, including Coca-Cola Co., Delta Air Lines Inc., United Parcel Service Inc. and Home Depot Inc. Its executives will have quick access to Hartsfield-Jackson Atlanta International Airport, the world's busiest airport in terms of passengers.

The likely location of the new headquarters will be Sandy Springs, a northern suburb of Atlanta, according to people briefed on the matter. Porsche Cars North America Inc. has had its headquarters in Sandy Springs since 1998 but plans to move this month to a new headquarters closer to the Atlanta airport, according to a spokesman.

The Mercedes-Benz move would be a welcome boost to the metro Atlanta area, which has struggled since the recession and still has an unemployment rate above the national average.

Mercedes-Benz had considered a move once before but backed away from the idea. In 1998, the company agreed to relocate its Montvale corporate headquarters to nearby Pearl River, N.Y. The move was later dropped over rising costs.

The move reflects a continuing shift of U.S. auto industry operations and corporate headquarters to the South. Companies are attracted by low union membership in right-to-work states, low corporate taxes, state and local incentives to relocate and easy access to relatively well-maintained highways, rail lines, ports and airports.

South Korea's Kia Motors Corp. opened a plant near Columbus, Ga., in 2010. A year later Volkswagen AG opened a plant in Chattanooga, Tenn. Other operations include BMW AG's plant in South Carolina and Hyundai Motor Co.'s plant in Alabama. The Georgia Ports Authority's port at Brunswick, Ga., is one of the nation's leading importers of new automobiles.

Last April, Toyota Motor Corp. said it would relocate the majority of its U.S. operations to a new campus in Plano, Texas.

Over the next three years, Toyota will move its manufacturing, sales and corporate headquarters to Plano from different sites throughout the U.S. The bulk of the people will come from the corporate headquarters now located in Torrance, Calif.

General Motors Co.'s Cadillac brand announced plans in September to open its own headquarters in New York next year, breaking away from the auto maker's home in Detroit. The office will be located in SoHo and likely open in the second quarter employing about 120 people.

Write to Jeff Bennett at jeff.bennett@wsj.com and Cameron McWhirter at cameron.mcwhirter@wsj.com

Access Investor Kit for Bayerische Motoren Werke AG

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=DE0005190003

Access Investor Kit for Daimler AG

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=DE0007100000

Access Investor Kit for Volkswagen AG

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=DE0007664005

Access Investor Kit for Volkswagen AG

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=DE0007664039

Access Investor Kit for Toyota Motor Corp.

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=JP3633400001

Access Investor Kit for Daimler AG

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US2338251083

Access Investor Kit for The Home Depot, Inc.

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US4370761029

Access Investor Kit for Toyota Motor Corp.

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US8923313071

Access Investor Kit for Volkswagen AG

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US9286623031

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

United Parcel Service (NYSE:UPS)
Historical Stock Chart
From Feb 2024 to Mar 2024 Click Here for more United Parcel Service Charts.
United Parcel Service (NYSE:UPS)
Historical Stock Chart
From Mar 2023 to Mar 2024 Click Here for more United Parcel Service Charts.