Today, Governor Josh Stein announced Daimler Truck Financial Services USA (DTFS), the financial lender for Daimler Truck North America, will create 276 jobs in Mecklenburg County. The company will invest more than $7.8 million to locate its headquarters in Charlotte.
“I am pleased to welcome Daimler Truck Financial Services USA to North Carolina,” said Governor Stein. “More than 200 financial service companies call North Carolina home thanks to our skilled workforce and top-tier quality of life.”
DTFS provides financing and leasing solutions for Daimler Truck North America, one of the largest commercial vehicle manufacturers in the world, that produces Freightliner trucks, Western Star trucks and Thomas Built Buses. For more than 50 years, the company has offered custom financing, leasing, and insurance options for its commercial vehicle customers that include owner-operators, fleet owners, and municipalities. DTFS’s new headquarters in North Carolina will consolidate the current offices from Michigan and Texas into 60,000-square-feet for its administration, HR, and financial operations.
“We’re thrilled to establish our new headquarters in the Ballantyne area—this move marks a pivotal step in aligning our team closer to DTNA and advancing our strategy for long-term services growth,” said Kevin Bangston, president and CEO of Daimler Truck Financial Services.
“Charlotte is the second largest banking center in the United States,” said Commerce Secretary Lee Lilley. “Daimler Truck knows the proximity to its existing manufacturing operations, combined with our excellent business climate and thriving financial sector, makes North Carolina the best place to grow and expand.”
Although the salaries for the new positions will vary, the average annual salary is expected to be $133,940, exceeding the Mecklenburg County average of $86,830. These new jobs could create a potential annual payroll impact of more than $36.9 million for the region.
DTFS’s operation in North Carolina will be facilitated, in part, by a Job Development Investment Grant (JDIG) approved by the state’s Economic Investment Committee earlier today. Over the course of the 12-year term of this grant, the project is estimated to grow the state’s economy by $1.08 billion. Using a formula that takes into account the new tax revenues generated by the new jobs and capital investment, the JDIG agreement authorizes the potential reimbursement to the company of up to $4,174,500, spread over 12 years. State payments only occur following performance verification by the departments of Commerce and Revenue that the company has met its incremental job creation and investment targets.
The project’s projected return on investment of public dollars is 119 percent, meaning for every dollar of potential cost to the state, the state receives $2.19 in state revenue. JDIG projects result in positive net tax revenue to the state treasury, even after taking into consideration the grant’s reimbursement payments to a given company.
Because DTFS chose to locate to Mecklenburg County, classified by the state’s economic tier system as Tier 3, the company’s JDIG agreement also calls for moving $1,391,500 into the state’s Industrial Development Fund – Utility Account. The Utility Account helps rural communities finance necessary infrastructure upgrades to attract future business. Even when new jobs are created in a Tier 3 county such as Mecklenburg, the new tax revenue generated through JDIG grants helps more economically challenged communities elsewhere in the state.
“This is outstanding news for Mecklenburg County and the entire state,” said Senator Woodson Bradley. “This announcement wouldn’t be possible without the hard work of the local and state partners that collaborated to add this great addition to our corporate community.”
“This region of the state has some of the brightest financial talent in the nation,” said Representative Laura Budd. “These well-paying jobs will be transformative for our talent pipeline as we help the company take root in our community.”
In addition to the North Carolina Department of Commerce and the Economic Development Partnership of North Carolina, other key partners in this project include the North Carolina General Assembly, the North Carolina Community College System, N.C. Commerce’s Division of Workforce Solutions, Mecklenburg County, and the City of Charlotte.