Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, September 16, 1993 TAG: 9309160111
SECTION: BUSINESS PAGE: B7 EDITION: METRO
SOURCE: Associated Press
DATELINE: CHARLOTTE, N.C. LENGTH: Medium
They say North Carolina still appears to be the front-runner for a 1,500-employee Mercedes-Benz plant that will make a new four-wheel-drive sports vehicle.
"If I were a betting man, which I am, I would say the North Carolina bid will win," said Nick Lobaccaro, who follows the industry for S.G. Warburgh & Co. in New York.
Gov. Jim Hunt has offered to build a $35 million training center near any auto plant that locates in North Carolina. The state also is offering tax incentives.
At this point, there's little more North Carolina or any other state bidding for the plant can do to win the ferocious competition.
"Right now, it's a matter of rounding up the appropriate dignitaries for the final announcement," said Maryann Keller, who follows the German luxury car maker for Furman Sells in New York.
Mercedes-Benz said last week it would select its U.S. site by Oct. 1 and begin construction by next spring. Officials said a decision could be made as early as Sept. 27.
Keller also thinks North Carolina will win the bidding that once included 30 states.
"First of all, BMW has already gone into the Carolinas," she said, referring to the BMW plant under construction in Greer, S.C. "I think they've thoroughly investigated [the options]."
A 1,000-acre site near Mebane in Alamance County has been touted as North Carolina's best.
Keller and Lobaccaro say the site meets Mercedes' key criteria, including available land; proximity to highways, rails and ports for exporting the vehicles; and an available work force.
"And there are a lot of [auto industry] parts companies around there," Lobaccaro said.
He said a North Carolina Mercedes plant would be able to take advantage of suppliers that are gearing up for BMW, while not competing for the same workers. The two sites are about 150 miles apart.
"Germany has become the highest-cost manufacturing center," he said. "Both companies needed an area with lower costs and a high-quality work force."
by CNB