Ford challenges Lexus with new Lincoln

The 2013 Lincoln MKZ 2.0 liter gas electric hybrid is displayed, Wednesday, April 4, 2012 at the New York International Auto Show. / AP Photo/Mark Lennihan

(AP) DETROIT - Ford (F) is taking aim at Lexus with a new Lincoln luxury sedan that goes on sale this fall.

The Lincoln MKZ will start at $35,925. That is $175 less than the Lexus ES 350. Ford will also offer a hybrid version of the MKZ at the same price. The hybrid version of the Lexus costs $2,750 more.

The MKZ is a critical car for Ford, which is trying to revamp the Lincoln brand after years of neglect. It's the first in a string of new Lincolns that will reach dealerships over the next three years.

Ford first revealed the new MKZ midsize car in January, but didn't announce the price until now.