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Ford plans $25,000 SUV, but it won’t be electric

Ford has shown dealers a new entry-level crossover expected to arrive in 2029 and cost the equivalent of around €23,000. Despite the low price, an electric powertrain is not currently planned; hybrid and gasoline versions are expected to launch instead. The model is set to be built in Mexico and could eventually replace the Ford Escape.

Constantin Hoffmann

Author

Ford shows dealers a new entry-level crossover for 2029

At an internal dealer event, Ford teased an upcoming crossover SUV that, according to dealers in attendance, is expected to launch in 2029. The key feature: The vehicle is set to start at around $25,000, roughly equivalent to around €23,000. That would likely make it Ford’s least expensive vehicle, positioned below models such as the Maverick.

Only early design sketches were shown in a video. Dealers described the vehicle as relatively boxy and wide, with styling reminiscent of an early Ford Escape. Ford did not provide any firm technical specifications at the event.

No EV at launch, even though Ford has a new EV platform

Of particular interest from an electric-car perspective: According to information from the event, the new crossover will not be based on Ford’s new Universal EV Platform. Instead, the plan is reportedly to offer it as a hybrid and with a gasoline engine. A fully electric version was not mentioned in this context.

At first glance, that seems counterintuitive, as a flexible EV architecture would appear to be an obvious choice for a high-volume crossover. At the same time, production considerations are often the deciding factor for major manufacturers: A model is frequently cheapest to build initially wherever existing manufacturing operations and supply chains are already set up for it.

What this could mean in everyday use

  • Low entry price: A combustion-engine or hybrid model can often be scaled up more quickly and cheaply at established plants.
  • EV fans will have to wait: Those hoping for a genuine entry-level electric SUV will not automatically get the answer they were looking for.
  • Hybrid as a bridge technology: For drivers without reliable access to charging, a hybrid may be attractive in the short term, even if it cannot match the running costs of a fully electric vehicle.

Production in Mexico, likely to succeed the Escape

According to reports, production is scheduled to begin in 2029 at the Hermosillo Assembly Plant in Mexico. There is also speculation that the model could eventually replace the Ford Escape. Ford is also said to have told dealers that hybrid powertrains remain a major part of its strategy.

Plans for the electric Ford Fathom are moving ahead in parallel

While the $25,000 crossover will apparently not launch as an EV, Ford has already sent another signal about affordability: Preorders for the upcoming Fathom electric pickup are scheduled to open in early 2027, with an announced starting price of $28,350. Deliveries are expected to begin later in 2027.

For Europe, and particularly the DACH region—Germany, Austria and Switzerland—this is mainly useful as context: U.S. pricing and model strategies cannot be transferred directly, as taxes, vehicle approval requirements, equipment structures and market segments differ. Nevertheless, the move shows how carefully manufacturers are currently balancing price, production locations and powertrain strategy.

Analysis: The market wants affordable electric SUVs, and Tesla benefits

In the U.S. in particular, more affordable electric SUVs have recently been in especially high demand, including the Tesla Model Y. Ford’s decision to initially forgo an EV in the entry-level crossover segment is therefore a notable signal.

For Tesla, this is more of a tailwind than a problem: As long as a major high-volume manufacturer does not introduce a direct electric rival in this price range, established bestsellers will face less pressure. At the same time, plans for 2029 are still a long way off, and platforms are often designed to be modular today. A fully electric version at a later date therefore cannot be ruled out; it is simply not part of the current leaked plans.

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