Daimler AG is moving down south, uprooting Mercedes-Benz USA’s headquarters from its longtime perch in New Jersey with plans to relocate it to an Atlanta suburb.

Wooed by lower costs, proximity to a Mercedes-Benz factory and government incentives, the German luxury car maker in July will begin moving about 1,000 U.S. personnel to a temporary facility and later move to Sandy Springs, Ga.

The...