Ford has ceased production of the Escape crossover, despite solid sales figures of 6.3 million units over its lifetime. The decision, announced in August, reflects a broader shift within the company toward prioritizing electric vehicle (EV) production and higher-margin models like the Bronco Sport. While the Escape’s departure may seem counterintuitive given its popularity, it aligns with Ford’s long-term strategy to streamline manufacturing and focus on future-proof vehicles.
The Logic Behind the Move
The Escape’s discontinuation isn’t about poor performance; it sold 132,471 units this year through November, outpacing the Bronco Sport (122,380) and even matching the regular Bronco. Instead, Ford needs the Kentucky assembly plant – currently building the Escape – for its upcoming electric pickup truck scheduled for 2027. This requires retooling the facility for the Universal EV Platform, which will underpin affordable, high-volume battery-electric vehicles.
The key takeaway is that Ford is making a calculated trade-off: sacrificing a popular but relatively low-margin vehicle to pave the way for more profitable EVs. This decision highlights a broader industry trend where automakers are shedding legacy models to free up resources for the electric transition.
The Bronco Sport’s Role and Tariff Considerations
Ford claims the Bronco Sport will absorb the Escape’s lost sales volume. However, the Bronco Sport is assembled in Mexico and, despite complying with the USMCA trade agreement with roughly 90% North American content, faces a tariff that makes it less profitable for Ford or more expensive for consumers. The Escape, built in Louisville, Kentucky, avoided these tariffs.
This raises questions about Ford’s long-term pricing strategy. While tariffs exist, they are manageable, making the Bronco Sport viable, but the tariff situation could influence future production decisions.
The Broader Automotive Landscape
Ford’s move is part of a larger trend of automakers abandoning entry-level sedans and hatchbacks. The company has already discontinued the Focus, Fiesta, Fusion, and Taurus, leaving the Mustang as its sole “car” offering. This shift reflects consumer preferences leaning toward crossovers, SUVs, and trucks.
However, this strategy creates an opening for foreign automakers that continue to offer sedans, allowing them to gain market share in a shrinking segment. Ford’s decision to drop the Escape feels like an invitation for competitors to fill the void.
A Long-Term Gamble?
Industry analysts, like Stephanie Brinley of S&P Global, believe Ford’s move makes sense in the long run. The company doesn’t want to compete in the “commodity vehicle” space and needs the Kentucky plant for its EV architecture. The Escape was a successful model, but Ford is betting that future EVs and trucks will drive greater profitability.
The risk? Abandoning an established nameplate like the Escape could alienate loyal customers. However, as Sam Fiorani of AutoForecast Solutions points out, Ford has successfully revived discontinued models like the Bronco and Maverick, suggesting that a future Escape revival is not entirely out of the question.
Conclusion
Ford’s decision to discontinue the Escape is not a knee-jerk reaction to poor sales but a strategic move to optimize production for EVs and higher-margin vehicles. The company is playing a long game, betting that its shift will pay off in the coming years. Whether this gamble succeeds will depend on its ability to deliver affordable, competitive EVs and retain customer loyalty in a rapidly evolving automotive market.
