Ford still does not recommend using Mercon V in current production CD4E transmissions (as used in the Escape). They specifically state that Mercon V should not be used.
By the way, there is no such thing as Mercon III. The confusion may lie in the fact that any fluid that mets Ford Mercon specs also meets General Motors Dexron specs. The current level of Dexron is Dexron III. Prior to that, there was Dexron, Dexron II, and Dexron IIE.
