Ford plans $25K crossover for 2026

A new Ford crossover could arrive in 2026 with a price tag around $25,000, targeting budget-conscious buyers who still want an SUV. Ford dealers were briefed about the forthcoming model, which appears to slot between the Escape and EcoSport in size, according to a source who spoke to Ars Technica.

The move reflects broader industry trends. Automakers are racing to offer cheaper SUVs as rising interest rates and inflation push new car prices beyond $40,000. Dealers have been asking Ford for a lower-cost entry to compete with models like the Hyundai Kona and Kia Seltos, which start near $24,000. Ford’s own EcoSport, discontinued in 2022, had a base price around $21,000, but its replacement would need to meet stricter safety and fuel economy standards, likely pushing the cost higher. The company’s recent $3.5 billion investment in a Michigan battery plant suggests Ford is prioritizing affordable electric options too, though this new crossover is expected to launch with gas engines first.

Details remain scarce, but the vehicle is said to share architecture with the Escape, meaning it could ride on Ford’s C2 platform and offer hybrid or plug-in hybrid options down the line. Analysts say the timing makes sense: used car prices are stabilizing after pandemic-era spikes, but new car affordability remains a hurdle for many buyers. Ford’s lineup currently starts at $24,690 for the Maverick compact truck, but demand for small SUVs has outpaced trucks in recent months. The new model would likely undercut the Escape’s $30,000 starting price, giving Ford a stronger foothold in the growing subcompact crossover segment.

If the $25,000 target holds, the vehicle could help Ford regain market share lost to rivals in the budget SUV space. The company’s sales have lagged behind Toyota and Honda in recent quarters, partly due to a lack of affordable options. A well-priced crossover could also align with Ford’s push into electric vehicles, as lower-cost models are critical to meeting U.S. emissions rules. Dealers expect more details by early 2025, with production slated to begin in late 2025 or early 2026.