When the 2020 Ford Escape Plug-in Hybrid electric SUV starts arriving in showrooms this summer, dealers will have to work diligently to capture the attention of the downsizing boomers and young millennial families that make up its targeted demographic.
The plug-in version of Ford’s 2020 Escape—which sits between its subcompact EcoSport and midsize Edge—received an EPA fuel economy rating equivalent to 100 miles per gallon, or MPGe.
The segment-topping fuel economy is an impressive statistic for the company’s first plug-in hybrid SUV in the U.S., but it will be a challenging selling point with fuel prices below $2 per gallon.
The Escape PHEV is the fourth and final variant of Ford’s popular compact SUV to roll out for the 2020 model year. Delayed for months due to the covid-19 pandemic, the Kentucky factory where the Escape is built resumed operation on May 18.
The plug-in hybrid SUV is listed on Ford’s website, but vehicles won’t appear in dealerships until sometime this summer. When the Escape PHEV arrives, Ford will have to overcome a pandemic, economic uncertainty and a growing list of competing electric vehicles to find buyers.
That includes a fierce competitor from Toyota. The Ford Escape PHEV will be sharing the spotlight with the 2021 RAV4 Prime, which is rated to achieve 90 MPGe—10 less MPGe than the Escape PHEV. In addition to fuel economy, buyers should weigh all-electric range and power when considering an electric vehicle. The RAV4 Prime outranks the Escape PHEV in both.
With seating for five in two rows, the Escape PHEV offers up to 37 miles of electric driving range from its 14.4-kilowatt-hour battery. Its 2.5-liter four-cylinder engine and 88-kilowatt electric motor deliver a combined 218 horsepower.
The Toyota RAV4 Prime offers an electric driving range of up to 42 miles and 302 horsepower. It also comes standard with all-wheel-drive a zero to 60 mph time of 5.7 seconds. While the RAV4 Prime’s strength centers around horsepower and capability, the Escape PHEV’s best asset is its price.
The Escape PHEV is available in three trim levels: SE, SEL and Titanium. The base SE has a MSRP of $33,040 and the Titanium costs $38,835. That’s much less than the RAV4 Prime, which costs $38,100 for the base SE trim and $41,425 for the higher-end XSE.
There’s more to these figures, however. Electric and plug-in hybrid vehicles qualify for a federal tax credit of up to $7,500 based on vehicle’s battery capacity. Although official numbers haven’t been announced, the Escape PHEV is expected to benefit from an estimated $5,000 federal tax credit that will bring the base price more in line with its gas-powered counterpart, which starts at $27,105. The higher starting price of the 2021 Toyota RAV4 Prime will also benefit for a similar credit.
Offering a well-equipped plug-in hybrid SUV for under $30,000 could draw buyers who want to test electrification before making the commitment to an all-electric SUV, which demands an even higher premium. Ford’s next electric SUV—the all-electric Mustang Mach-E—will have a starting price around $50,000.
“The plug-in hybrid Escape is for people who can’t afford an all-electric SUV, or want the flexibility of having a gas engine,” said Mike Levine, a Ford spokesman.
The average driver travels 29 miles per day, according to the Bureau of Transportation Statistics. The Escape PHEV’s 37-mile driving range could tackle similar trips using only electricity, but the safety net provided by the gasoline engine alleviates the range anxiety associated with all-electric vehicles.
The stats for both plug-in offerings look great on paper but finding buyers may not be easy. Though the market for PHEVs has been maturing, many consumers are still skeptical of how to fit these new technologies into their lifestyle.
“Consumers may be more confused with plug-in hybrids,” said Stephanie Brinley, an analyst with data firm IHS Markit. “It’s a more difficult concept to grasp than it sounds.”
A growing category of electrified vehicles—which also includes traditional hybrids, mild hybrids powered by 48-volt batteries and pure EVs—offered in a range of body styles also cut into PHEV sales. In 2018, PHEVs accounted for 18 percent of the electrified vehicle market, according to IHS Markit. At the end of 2019, plug-in hybrids only represented 11 percent of EV sales.
Consumers have a hard time understanding why plugging in their car is necessary when it has a gasoline engine, Brinley said.
It’s harder for PHEV owners to justify the price of outfitting their homes with a 240-volt charger. Consumers with a pure electric vehicle in their driveway can offset the investment because the they never pay for gas. The upfront expenses as well as increased electricity costs each month could be a barrier for entry for those who can easily fall back on the pump.
Tesla helped popularize all-electric vehicles, but there is no similar automotive zeitgeist for plug-in hybrids. Unless consumers are automotive industry insiders or are enthusiasts who keep up with technology trends, sorting through the varying benefits of these different alternative powertrain vehicles is a new concept for many buyers.