Ford stock was slightly down on Tuesday in spite of the $260 million new global technology and business center for Ford Motor Company (NYSE:F) having been formally inaugurated. The largest engineering center in Mexico as well as business operations and activities involving global transformation will be housed on the new campus. A hybrid work environment will be used on campus by around 9,000 employees, according to the manufacturer.
The number of major automakers expanding in Mexico is not just Ford’s (NYSE:F). Significant investments have already been made by Volkswagen (OTCPK:VLKAF) and Nissan (OTCPK:NSANY), while Elon Musk, the CEO of Tesla (NASDAQ:TSLA), is rumored to be considering investing in the northern region of Mexico and Stellantis is reportedly looking to invest billions to produce electric vehicles there.
Automakers are planning for strategies to ensure that their electric vehicles qualify for the EV tax credit in addition to attempting to cut costs by establishing operations or manufacturing in Mexico. A qualifying electric vehicle (EV) must be manufactured in North America in order to qualify for the tax credit under the Inflation Reduction Act. In order to meet the requirements, many automakers will have to move their EV production to plants in the United States, Mexico, or Canada.
Developments Likely to Influence Ford Stock
The governments of Mexico and the United States are also collaborating on a proposal to transform parts of the border region into a renewable energy center that would include lithium mines, solar and wind power plants, and electric vehicle manufacturing facilities. If more models qualify for the tax credit than EVs from Europe or Asia, that approach might help boost the competitiveness of American electric vehicles. White-collar workers at Ford Motor Company (NYSE:F) who are labeled underperformers are being dealt with in a different way.
According to the WSJ, the manufacturer has told its managers that underperforming employees must pick between severance pay and a program to improve their performance. Employees with at least eight years of service and a pattern of declining performance will be the majority of those affected by the move.
According to the report, the revised regulations became effective on October 1, 2022, and they are applicable to all salaried employees in the United States. Managers’ role in dealing with subpar performance should be made simpler by the adjustment. A performance-enhancement plan can be skipped by workers with fewer than eight years of experience in favor of an involuntary departure with severance.
Featured Image- Unsplash @ FourFour
Author Jowi Kwasu 
