Editor’s note: The following individual(s) have been named to the Southern Economic Development Hall of Fame based on SB&D owner Michael C. Randle’s travels throughout the American South since the late 1980s to today. The Hall of Fame will now be updated each year on SouthernBusiness.com.
The sidebar stories of individuals who earned their way into the SEDHOF are written by Randle, the Hall of Famer’s current employer, or penned by the Hall of Famer. The humorous stories of Randle’s are true, but some could be embellished a bit.
“Can you smell the paint shop from here?”
By Michael C. Randle
The invitation to see the Mercedes-Benz site in Vance, Ala.
One day in 1993 I received an invite by two big-time leaders in Alabama and I can reveal their names now that both have passed away. They were Elmer Harris, CEO of Alabama Power, and Anthony Topazi of said company. I had already known them for 10 years through the Birmingham Business Journal, another publication I founded, and they happened to be our biggest advertising customer in my local Birmingham newspaper.
Me, the two mentioned and a pilot flew to a field in Vance, Ala. on Interstate 20/59 and the three of us walked up a hill and stood in the woods and stared at more woods in the valley below. One said, “Michael, can you smell the paint shop from here?” Whoa! I just lit up and so did those two!
My answer was, “You got it, don’t you? You won Mercedes! Is that why you brought me here? Oh, the wonder, the joy and yes, I can imagine the smell of paint!” Am I the first media person to get this “hint?”
Both said, “Yes. We have done business with you for 10 years with the BBJ. We know you and we trust you to keep a secret,” but they never told me they had won it. That would be Mercedes-Benz.
No response on that hill other than the word “confidential” and the previous comment and smiles. As we went back to the helicopter, Mr. Harris was walking with such swag I knew for a fact Alabama had won Mercedes. And I and Mr. Topazi followed that “swag” back to our copter ride. Still, that day I was not sure Mercedes-Benz would make its first large U.S. investment in Alabama.
The inside story
Why and how did I predict in great detail publicly and accurately about Mercedes coming to Alabama before it happened? Well, through good reporting; but mainly (if anyone remembers this), Gov. Folsom was not ON the plane to Germany with the other four governors in the running for the Mercedes plant, according to the Wall Street Journal. I think Ohio, S.C., N.C. and one other state; Michigan were in the running for Mercedes? Maybe Kentucky was in the running, too.
Incredibly sloppy and stupid reporting by the Wall Street Journal published later but prior to the official announcement, noted that because Gov. Jim Folsom was not ON that plane, Alabama was the first state cut by Mercedes.
I thought, “Well, shit-fire, that is just wrong.” Me thinking to myself: “This deal is on the fast track because of BMW in South Carolina. Why eliminate one state out of five publicly? Is this how it is going to be; some kind of process of taking states off the list one-at-a-time? No way. I know Gov. Jim Hunt and I know Gov. Jim Folsom. I know how they think.” In other words, that WSJ report made no sense to me.
Folsom even admitted prior to the announcement, something like “I was not on the plane to meet with Mercedes officials. I was not invited.” That statement was intentional to deflect journalists like me and I knew it right when he said it.
Oh, that got my mind going big-time. Gov. Folsom was not ON the plane because he knew Alabama had won one of the most prestigious economic development projects in history.
I figured, if N.C. Gov. Jim Hunt, (who I was in contact with that month as he began his second term) the predicted leader for the facility (Mebane, N.C., Alamance County) was ON that plane then he was on the ‘loser plane.’
My suspicion was based on the Ohio governor, who was ON the plane. That alone convinced me that I was right. Ohio is a strong recruiting state. But they lose 80 percent of deals if a couple or more Southern states are in the running. I have all the data going back four decades to prove that.
My theory was further supported by the thought of, now, if N.C. Gov. Hunt was the only one ON that plane, then N.C. won it. But he was not.
North Carolina, the predicted leader lost out even though the front-page headline read in the WSJ one day prior to the official announcement, (paraphrasing) “Mercedes-Benz picks North Carolina for its first U.S. plant.” Right then I knew who won it; and it wasn’t N.C.
And again, it was Alabama. If N.C. Gov. Hunt was ON the plane, and he was, I knew he did not win it if the Ohio governor was also ON that plane. And he was! Mercedes was not doing business with Ohio; that I knew for a fact.
Mercedes through private channels wanted nothing to do with the union labor situation in Ohio. That I knew from the Germans themselves, even though it was strictly private information. They never said that publicly and I am not sure labor laws allow that kind of talk.
I had a really good laugh at the Wall Street Journal that day, when the front page exclaimed, “North Carolina Wins Mercedes-Benz.” I told others, “I just beat the WSJ to one of the most important stories in economic development history!”
That plane to Germany
Going back to the plane that four governors flew to Germany together to apparently work out the deal with Mercedes, again made no sense to me. No, that was the “Sorry guvs, and thank you for all your hard work, but we have chosen Alabama” plane. The negotiations with Alabama were already in place.
Fast forward more than 30 years and Mercedes announced a $4 billion expansion of its Alabama industrial complex in 2026.
But really, give it up for all those who worked on Mercedes more than 30 years ago, as well as the great Ellen McNair, Sec. of Alabama Commerce and Gov. Ivey regarding this new Mercedes deal; and of course, back in the day, Billy Joe Camp, Neal Wade, as well as Elmer Harris and Anthony Topazi.
A job well done!
