Mercedes in Alabama: A $1.3 Billion Industry and 10,000 Jobs.NASHVILLE, Tenn.--(BUSINESS WIRE)--May 25, 1999-- Mercedes-Benz U.S. International Mercedes-Benz U.S. International (MBUSI) is a Daimler AG Mercedes-Benz automobile manufacturing plant in Vance, Alabama. It is located about 34 miles west of Birmingham and about 19 miles east of Tuscaloosa. is a $1.3 billion industry in Alabama that is responsible for an estimated 10,000 jobs, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. an economic impact study conducted by Dr. Keivan Deravi at the Center for Government and Public Affairs Those public information, command information, and community relations activities directed toward both the external and internal publics with interest in the Department of Defense. Also called PA. See also command information; community relations; public information. at Auburn University Auburn University, main campus at Auburn, Ala.; land-grant and state supported; opened 1859 as East Alabama Male College, reorganized 1872 as the Agricultural and Mechanical College of Alabama; became coeducational 1892; renamed Alabama Polytechnic Institute 1899, at Montgomery. The Economic Development Partnership of Alabama, which commissioned the study, presented a summary of the results today in Nashville at the Automotive News New American Manufacturing Conference. "We were fully aware of the phenomenal impact Mercedes has had on Alabama's reputation as a place to operate a business, but this is the first time we have quantified what the project has meant to the state's economy," said Neal Wade, EDPA EDPA Exhibit Designers and Producers Association (US) EDPA European Defensive Pistol Association president and chief executive officer. "This study demonstrates why an automotive manufacturer is considered the crown jewel Crown jewel A particularly profitable or otherwise particularly valuable corporate unit or asset of a firm. Often used in risk arbitrage. The most desirable entities within a diversified corporation as measured by asset value, earning power, and business prospects; in takeover in economic development - the impact is staggering." Mercedes has been responsible for creating 3,693 project specific jobs - 1,800 at the Mercedes plant in Tuscaloosa, 300 announced jobs at a new parts consolidation facility in Bessemer and 1,616 jobs at tier-one suppliers that have located in the state as a direct result of the project. The study estimates that 6,080 indirect jobs have been created, for a total of 9,773 direct and indirect jobs. The $1.3 billion represents Mercedes' annual expenditures in Alabama ($1.1 billion), plus the value-added at the Tuscaloosa facility ($244 million). Other economic impact information in the study includes: -- The total annual earnings for jobs created as a result of Mercedes is $354 million. -- The annual production impact (economic impact of the value-added at Mercedes and its Alabama-based tier-one suppliers) is $803 million. -- $112 million in annual retail sales and other business activity is generated in the state as a result of the Mercedes project. -- Mercedes and suppliers contribute $9.5 million annually through employees' individual income taxes and $4.5 million in sales taxes. -- Mercedes contributes $1 million annually in education property and sales taxes in Tuscaloosa County. -- The combined capital investment of Mercedes and its Alabama-based tier-one suppliers is $679.5 million. Mercedes-Benz announced in 1993 that it would invest $300 million to build a manufacturing facility in Alabama - its first passenger vehicle plant in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . The company had planned to employ up to 1,500 by the end of the decade, but has already exceeded that goal by more than 300. Mercedes completed construction of the plant in 1996 and began production of the M-Class sport utility vehicle in early 1997. To meet overwhelming worldwide demand, MBUSI MBUSI Mercedes-Benz United States International (Alabama M-class Plant) MBUSI Mercedes Benz Us International has invested an additional $80 million in plant expansions in order to increase production by 20 percent annually from 65,000 vehicles to 80,000 in 1999. EDPA, a private, non-profit organization A non-profit organization (abbreviated "NPO", also "non-profit" or "not-for-profit") is a legally constituted organization whose primary objective is to support or to actively engage in activities of public or private interest without any commercial or monetary profit purposes. , gathered and provided research and data used to conduct the study. |
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