The squarer-styled Mark II Escort appeared in the showrooms in January 1975. Unlike the first Escort (which was developed by Ford of Britain), the second generation was developed jointly between the UK and Ford of Germany. It used the same mechanical components, floorpan and core structure as the Mark I. The estate and van versions used the same doors, roof and rear 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. The rear suspension still sat on leaf springs though some contemporaries such as the Hillman Avenger had moved on to coil springs.

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. The base spec Popular versions for British market were divided into Popular and Popular Plus, with the former being an austerity model with vinyl seats and rubber carpets, the 'Plus' version having a fully trimmed interior. In 1979 and 1980 three special edition Escorts were launched: the Linnet, Harrier and Goldcrest.

The 2.0 L RS2000 version, with its distinctively slanted polyurethane nose, and featuring the Pinto engine from the Cortina, was announced in the UK in March 1975 and introduced in Germany in August 1975, being reportedly produced in both countries. It provided a claimed 110 bhp and a top speed of 110 mph.

As with its predecessor, the Mark II had a successful rallying career. All models of the Mark I were carried over to the Mark II, though the Mexico gained the RS badge and had its engine changed to a 1.6 L (1,593 cc) OHC Pinto instead of the OHV. A Sport model was also produced using the 1.6 L Crossflow. A new model was released, the RS1800, which had a naturally aspirated 1,833 cc Cosworth engine It was essentially a special created for rallying. The works rally cars were highly specialised machines. Bodyshells were heavily strengthened and characterised by the wide wheelarch extensions, and fitment of four large spotlights for night stages.

The Mark II Escort continued its predecessor's run on the RAC Rally, winning every year from 1975 to 1979 and racing in a variety of other events around the world. In the 1979 season of the World Rally Championship, Björn Waldegård took the drivers' title, Hannu Mikkola was runner-up and Ari Vatanen finished the year in fifth place, all driving Escort RS1800s.

These drivers' successes throughout the year gave Ford the manufacturers' title, the only time the company achieved this until the 2006 season.  Vatanen won the drivers' title in 1981, again at the wheel of an RS1800. This victory came despite the arrival on the WRC scene of the four-wheel drive Audi Quattro. Ford placed in the top three in the manufacturers' championship for the sixth year in a row.

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