Ford Escape Hybrid Begins Production

With a price tag of $33,195, the move to hybrid-power costs about $5000 more than an

The Escape Hybrid is the world's first production hybrid-powered SUV. (Photo: Ford Motor Company of Canada)

equivalently equipped regular Escape, with all-wheel drive variants starting out even higher, at $35,925. Admittedly the Escape Hybrid isn't cheap - some $3,205 more expensive than the current bestselling Toyota Prius, but with tax breaks (depending on the province/state of purchase) and SUV body style, Ford should unload every Escape Hybrid that it can make.

As an aside, the difference in pricing between the Prius and Escape Hybrid in the U.S. is much more, at $6,085 USD ($8,050 CAD). Being that the Canadian spec Prius sells for $29,990 CAD ($22,666 USD) and the actual price of the Prius is $20,295 USD ($26,857 CAD), the $3,133 CAD ($2,371 USD) discrepancy makes it pretty easy to see that Toyota is subsidizing Prius sales into the U.S. Reportedly Ford will lose about $3,000 USD per vehicle in America, in order to compete.

Insiders also report that Ford intends on stepping up production from the 20,000 units slated for this year to a higher number

Ford's hybrid model uses a small 4-cylinder engine backed up by a torquey electric motor. Performance is claimed to be "V6-like". (Photo: Ford Motor Company of Canada)

based on early reports of a healthy demand. If the reports are true, it may not lose as much per car as speculators believe.

The Escape Hybrid is the first of many steps in Ford's environmental commitment plan. Although it has completed North America's first gasoline-electric powered SUV, the automaker's agenda to develop other green sources of power continues. Clean diesel and biodiesel products are being looked into, partially due to a strong demand for a TCDI-powered Focus in Canada. Also, the development of hydrogen fuel cell-powered cars (FCVs) and hydrogen-fueled internal combustion engines (ICEs) continues.