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Mercedes-Benz of North America Delays U.S. Headquarters Project

6 April 1998

Mercedes-Benz of North America Delays U.S. Headquarters Project

    MONTVALE, N.J., April 6 -- Mercedes-Benz of North America,
Inc. (MBNA) today announced it has delayed its U.S. headquarters project,
including its previously announced decision to relocate and build a new U.S.
corporate headquarters in Pearl River, NY -- in the Town of Orangetown,
Rockland County.
    Citing a projected inability to satisfy the very specific cost allocation
parameters of its $50 million headquarters budget and refusing to exceed such
an allowance, Michael Bassermann, MBNA chairman and CEO, stated, "Over the
past few years, Mercedes-Benz of North America has demonstrated -- with
remarkable success in the marketplace -- its commitment to creating a new
relevancy for total corporate value.  It is evidenced by the way we engineer
and assemble our automobiles, to the way we have structured our organization
and rationalized our dealer body, to the way we sell, market and support our
products throughout the United States."
    Bassermann continued, "Today's announcement, to delay our headquarters
initiative, is purely the result of our inability to reconcile the investments
required to create a new headquarters facility commensurate with our position
as the world's premier marketing organization, within our strict budget
allowance -- given the size and scope of the project as it has continually
evolved.  In the all-important terms of cost containment, it's certainly
better to come to such a conclusion now -- before actually commencing
construction -- as opposed to after building had actually begun."
    Mercedes-Benz of North America will immediately begin to reassess all its
options with regard to its long-term headquarters requirements and
opportunities.
    Bassermann further noted, "The public most certainly needs to be aware
that the State of New York, Rockland County, the Town of Orangetown and the
associated Economic Development authorities have proved incredibly
cooperative, supportive and efficient throughout the pursuit of the MBNA
headquarters project.  Moving forward, we look forward to continued
interaction with them as we analyze our possible alternatives."
    Mercedes-Benz of North America additionally announced that despite
delaying its headquarters project, it intends to honor its commitment to
relocate the historic Seth property in Pearl River, and will follow through
with its proposal to donate it to the Town of Orangetown.
    MBNA, the U.S. sales and marketing company for Mercedes-Benz passenger
cars and light trucks, is situated in Montvale, NJ.

SOURCE  Mercedes-Benz of North America, Inc.