Ford Says Goodbye to 2 Popular Crossovers

Core Viewpoint - Ford Motor Company is discontinuing the Escape and Lincoln Corsair at the end of the 2026 model year, raising concerns among investors about the potential risks of exiting popular vehicle segments without a clear plan [1][4]. Sales Performance - The Escape sold 93,805 vehicles in the U.S. through July, outperforming the Bronco and Bronco Sport, which saw a 45% year-over-year growth [3]. - Despite its sales success, the Escape has experienced some of its worst-selling years in the past five years [5]. Strategic Decisions - Ford is replacing the Escape and Corsair production with a new midsize electric pickup truck, expected to be priced around $30,000, which is seen as a compelling price point for an electric vehicle [7]. - The company has invested approximately $5 billion in the Louisville Assembly Complex, creating around 4,000 jobs to support the production of up to eight new EVs [9]. Financial Implications - Ford's Model-e division, responsible for EVs, reported a loss of $5.1 billion during 2024, raising concerns about the financial viability of replacing profitable gasoline vehicles with electric models [10]. - The company anticipates that the new electric pickup will be profitable early on, marking a significant step in the evolution of EV profitability [10]. Market Challenges - The transition to electric vehicles may face challenges due to slower-than-expected EV sales growth in the U.S. and potential rollbacks of EV incentives and tax credits by the current administration [11]. - While the decision to discontinue popular models may cause concern among investors, it reflects a strategic long-term vision that is not always characteristic of Detroit automakers [12].