Ford has revealed plans to launch a new crossover SUV with a starting price of approximately $25,000, positioning it as the brand's most affordable vehicle. The model was previewed to dealers during a private meeting in Las Vegas and is described as a boxy, wide SUV resembling the first-generation Escape.
According to an Automotive News report, the vehicle is expected to enter production in 2029 at Ford's Hermosillo Assembly Plant in Mexico. However, the company has not confirmed whether this model will be fully electric. Reports indicate that the SUV will not utilize Ford's Universal EV platform and is instead anticipated to be offered with hybrid and gas-powered powertrains.
This announcement has generated significant speculation regarding Ford's broader electrification strategy. Sam Fiorani, vice president of global vehicle forecasting at AutoForecast Solutions, suggests the new model will likely replace the Ford Escape. The decision to not electrify this entry-level SUV, at least initially, contrasts with the growing demand for affordable electric vehicles.
In the first half of 2026, four of the top five best-selling EVs in the U.S. were affordable SUVs, including the Chevy Equinox EV and Tesla Model Y, while Ford's Mustang Mach-E ranked seventh with sales dropping 46% year-over-year to 11,632 units. If Ford were to electrify this new model, it could become a strong competitor to vehicles like the Tesla Model 3 and Chevy Equinox EV, further stimulating the affordable EV segment. However, the company has assured dealers of its commitment to hybrid powertrains going forward, and the Fathom electric pickup, starting at $28,350, remains its primary focus for the affordable EV market.
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