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The S gear in the Ford Escape acts as the Sport Mode option, giving you the ability to manually change gears using the toggle on the gear lever. In Sport mode, you can shift up using the + button and down using the - button. Safety measures are in place to prevent issues like shifting into a lower gear at a high RPM. Once you switch to manual control with this feature, it will stay in manual mode until you switch the gear lever back from (S) sport to (D) drive.
In American terms, the "S" gear represents the sport mode function that enables you to manually change gears using the toggle on the gear shifter.