One problem related to differential unit has been reported for the 1997 Ford Escort. The most recently reported issues are listed below.
Transmission "blew" going at the speed of 35 miles an hour in heavy rush hour traffic. Cause of failure has been linked to the differential in the transmission. Outer case of the transmission box was cracked becuase of the force of impact. Loss of power almost caused a major accident because of loss of power and coming to a complete stop.