Which parts fail
Components named in complaints (automatic and manual transmissions, CVT, axles, driveshaft, 4WD/AWD).
Mileage when the problem started
Owner reports
Selected complaints filed with NHTSA by 1998 Ford Escort owners, lightly cleaned up (personal details are redacted by NHTSA).
The failure involves the interlock that keeps you from shifting out of park without applying the brake. My left rear turn signal bulb had burned out. I stopped the car, put it in park, and set the emergency brake, to get out and check the other turn signals. First I turned on the left side and verified that the left rear bulb wasn't working. Then I asked the passenger in the car to switch on the right signals. She leaned on the shift lever to try to reach the turn signal lever, and when she did, the car went into reverse. It moved back slowly since the emergency brake was on, so I jumped out of the way and got in and stopped it. Upon further investigation, I found this: that if the left rear turn signal bulb is bad, the shift interlock is released when you turn on the left turn signal, allowing the shift lever to be moved out of park without stepping on the brake first. …
Dt: consumer stated the vehicle was parked in the garage when a fire started in the left front underneath the hood. The vehicle had been driven the previous night, and had been sitting for approximately 15 hours. The fire investigator determined the cause of fire was from the power control module.
The vehicle was experiencing transmission failure. It would only move in reverse and would slip in all gears. It has been determined that transmission failure is due to modification consumer made to protect the transmission when in tow. Warranty repair is denied by the dealer.
Backing out of driveway and looking in the mirror to see if any one was coming, all of a sudden vehicle flew forward and hit fence. Then wheels turned to the right, missing the telepole. Vehicle ended up hitting trees and stopped. Air bag did not deploy. Had seat belt on.
I was driving the car on July 15th and stopped at the red light before crossing the tracks and when the light turned green I attempted to go forward and the car would not go forward. I flagged the people behind me to back up and I couldn't go backwards. I panicked because it was early morning rush hour and my 5 year old daughter was with me but after a couple of minutes the car slowly went forward. I called service and made the appointment to take the car in on July 22 which was the earliest they could get me in. On the morning I went to take the car in I was driving down the street at 30 miles per hour and the car started to slow down and I looked at the dashboard and realized that the indicator lights were all on. Fortunately I was able to pull over and had my fiance' with me. …
Vehicle had transmission repaired in August of 2001. Soon thereafter, it started to have difficulties with shifts. Now, the vehicle grinds going into 5th gear / refuse to go into 5th and will actually force itself out of 5th gear while at highway speeds, which is obviously unsafe trying to merge onto / drive on dc highways. Took it to a dealer on May 30th, who said they could not recreate the problem. Took vehicle to same dealer on July 5th, rode with shop manager who recreated the problem but was told it would be at least 2 weeks for repair. Took vehicle to another dealer, who had it all week, repaired some component, but problem resurfaced on trip home from dealership. Contacted dealer, who suggested that I could drive a vehicle in this condition on the highway for the next two weeks, then bring it in. …
Vehicle started, engine rattled upon acceleration at all speeds at 2300 miles. After numerous failed repair attempts by dealer,I sent complaint to fords dsb board.working throgh arbitration vehicle looked at by engineer.they replaced PCM.problem got worse,along with new problems,lack of power,hard start,transmission hesitaing.then they replaced fuel pump,didnt help, then ignition switch, didnt help,then mass air flow sensor and air filter, didnt help.finally vehicle started stalling while driving, during acc. Towed back to shop, Ford had it six weeks this time replaced PCM two more times.I have vehicle back,still problem with transmission hesitating.vehicle in shop eight times for same or related problems and totalling almost three months in shop. Still in arbitration, consdering closing case and taking to dsb. Personally.
I live in burlington ontario Canada, yet felt that this issue needed to be addressed beyond contacting the ministry of transportation in Canada, (of which I am in the process of doing). I belong to a large group of Escort zx2 owners who are on the second and even 3rd transmission! This model was first introduced in 1998(the year of my car) and should not have had so many problems with our transmissions. It is extremely weak and has frequent mis-syncing shifts. I feel this is not only a safety issue, yet one that deserves immediate attention. Please have Ford do a study on this transmission and come up with some sort of "fix" as the present is unacceptable. I have gone through every other channel of which I could in Canada and am now coming to you. Please help.
When you try to use the washer fluid it leaks on the hood of the car causing the hood to become discolored from the windsheild washer fluid. Also whenever you are at a stop the car starts to shake, they Ford say that it is from the engine mounts and that it is not hazardous so they will not do anything about. Last their is problems with the transmision, whenever you are moving slow or in a stop position and start to move the car jerks really bad. It makes you feel like someone ran into you or that you ran something over. I have reported this to the company, but they can't do nothing about. I have heard other people with the ecaxt same car have the exact same problems
I have had near accidents relating to car fuel pump or transmission shops couldn't find any problems but the drivablity of my 98 Escort zx2 cost me more money in problem solving, 1,500 plus in recent repairs including emergency and repeat repairs and faulty repairs. My fuel economy is 160 miles per tank to almost 200 miles. No one can seem to find the problem(s). Large thunking in rear trunk (scary)when im taking off and reaching a steady speed. Take the car to major Ford dealerships, to no avail. Car doesn't always "go" from a complete stop in traffic,this has caused quite a scare as well. Thank you for helping and making note of my account. Debbie
Transmission complaints in other Escort years
Frequently asked questions
How common are transmission problems on the 1998 Ford Escort?
NHTSA has 43 complaints about the transmission & drivetrain of the 1998 Ford Escort, 11% of the model year's 375 complaints. The component named most often is automatic transmission (24 mentions).
Is there a recall for 1998 Ford Escort transmission problems?
No. NHTSA lists no transmission & drivetrain recall for the 1998 Ford Escort. If the problem is widespread, a repair may still be covered by an extended warranty or a manufacturer service bulletin — ask a dealer.
At what mileage do 1998 Ford Escort transmission problems start?
Half of the complaints with a recorded mileage happened before about 65,000 miles, and 33% before 25,000 miles.
Is it dangerous?
Owners linked 1 crash, 1 fire and 0 injuries to transmission & drivetrain problems on this model year. If you notice symptoms, have the car checked before driving further.
Source: U.S. National Highway Traffic Safety Administration (NHTSA) — owner complaints through October 20, 2026, recalls and defect investigations; fuel economy from the EPA. Complaints are unverified reports and are not proof of a defect. How we rate model years.