The squarer-styled Mark II[3] version appeared in January 1975. The first production models had rolled off the production lines on 2 December 1974.

Unlike the first Escort (which was developed by Ford of Britain), the second generation was developed jointly between the UK and Ford of Germany. Codenamed "Brenda" during its development, it used the same mechanical components as the Mark I. The 940 cc engine was still offered in Italy where the smaller engine attracted tax advantages, but in the other larger European markets in Europe it was unavailable. The estate and van versions used the same panelwork as the Mark I, but with the Mark II front end and interior. The car used a revised underbody, which had been introduced as a running change during the last six months production of the Mark I. Rear suspension still sat on leaf springs though some contemporaries such as the Hillman Avenger had moved on to coil springs. The car came in for criticism for its lack of oddments space, with a glove compartment only available on higher end models, and its stalk-mounted horn.[20]

The "L" and "GL" models (2-door, 4-door, estate) were in the mainstream private sector, the "Sport", "RS Mexico", and "RS2000" in the performance market, the "Ghia" (2-door, 4-door) for a hitherto untapped small car luxury market, and "base / Popular" models for the bottom end. Panel-van versions catered to the commercial sector. The 1.6 L (1598 cc/97 CID) engine in the 1975 1.6 Ghia produced 84 hp (63 kW) with 125 N·m (92 ft·lbf) torque and weighed 955 kg (2105 lb).

A cosmetic update was given in 1978 (note that Australia received differing updates - see below), with L models gaining the square headlights (previously exclusive to the GL and Ghia variants) and there was an upgrade in interior and exterior specification for some models. Underneath a wider front track was given.

In 1979 and 1980 three special edition Escorts were launched: the Linnet, Harrier and Goldcrest.

Production ended in Britain in August 1980, other countries following soon after.