Ford Axes 2 Beloved Crossovers in Shocking Market Shift
Ford just pulled the plug on two of its most popular crossovers—leaving dealers scrambling and customers reeling.
Strategic Realignment or Panic Move?
The automaker isn't just trimming fat—it's executing a brutal portfolio overhaul. No warning, no phase-out, just straight discontinuation. Production lines halt immediately. Showroom floors now missing two former cash cows.
Market Fallout
Resale values on these models just got interesting. Pre-owned prices might spike—or crater. Either way, it's another reminder that traditional auto manufacturers still make sudden, shareholder-pleasing cuts that would give a crypto degen pause. At least when a token dumps, it's expected.
Legacy auto continues to innovate in the worst ways: mastering the art of disappointing their base while hedge funds applaud the 'cost-saving measures'.
Image source: Ford Motor Company.
Gone but not forgotten
Ford's announcement shocked many because the two crossovers are popular and sell well. In fact, the Escape sold 93,805 vehicles in the U.S. through July, which was enough to outsell Ford's iconic Bronco and Bronco Sport separately, and that's with the Bronco posting impressive 45% year-over-year growth. Meanwhile, the Corsair was the second-best-selling Lincoln model through July, behind only the Nautilus.
For consumers, if you're a huge fan of the Escape, fear not because Ford will still sell the 2026 model well into next year. If you're an investor, this is a little worrisome because one of the most important things you can do in the automotive industry is cover key segments. Exiting them without a plan doesn't work out well -- just ask. Stellantis is currently scrambling to replace the Jeep Cherokee, a nameplate that accounted for a sizable chunk of Jeep sales before it was discontinued earlier this decade.
However, as you can see in The Graph below, despite outselling popular models through July, the Escape has actually been having some of its worst-selling years ever over the past five years.
Data source: GoodCarBadCar.net. Graphic source: Author.
Unlike Stellantis, Ford might already have its replacement. It recently announced an upcoming midsize electric pickup truck, more similar in size to the Maverick than the Ranger, and priced at around $30,000. This is a very compelling price point for an electric vehicle (EV), especially a truck, even if we don't see it until 2027.
In fact, Ford is doing exactly the opposite of Stellantis right now. Stellantis is working to replace the Cherokee-sized SUV and bring back a gasoline-powered version of the Charger muscle car while simultaneously hitting pause on its all-electric Ram pickup truck.
On the flip side, Ford is directly replacing the production of both the Escape and Corsair with this upcoming pickup at its Louisville Assembly Complex. Ford has invested around $5 billion in the Louisville complex, creating roughly 4,000 jobs as it prepares its recently unveiled Universal EV Platform to usher in a family of up to eight new EVs.
A big gamble
Ford is making a big gamble that it can replace more profitable gasoline-powered vehicles with its electric pickup. That could make some investors skittish, considering that Ford's Model-e, the division responsible for EVs, lost $5.1 billion during 2024. The good news is that Ford anticipates this electric pickup to be profitable early on, which is a tangible step forward in the evolution of EVs that have so far sparingly produced a profit for anyone across the globe.
It's also a risk to swap out two popular gasoline models with an electric pickup when you consider that EV sales have been slower to gain traction in the U.S. than anticipated. Further, with the current administration deadset on rolling back EV incentives and tax credits, the road in the NEAR term might be even more challenging.
For long-term investors, while this MOVE could give you reason to pause, rest assured that it's at least a strategic decision looking into the future -- something Detroit automakers haven't always been known to do.
