The design of the Ford LTD II is notable as one of the largest vehicles ever produced as an intermediate, released just as the entire American auto industry began a period of downsizing.

The LTD II carried over much of its powertrain line from the Torino, with one exception; in the interest of fuel economy, the 460 V8 was dropped from all Ford and Mercury intermediates, with the 302 V8 making its return as the standard engine (outside of California).

All body styles (including wagons) featured frameless door glass; the 4-door models had a thin, fixed "B" pillar.

Though limited funds precluded a complete redesign of the exterior, the roofline and all sheet metal from the doors rearward were given an extensive update.

The Impala and Caprice downsizing resulted in the LTD II having a larger exterior footprint with a smaller interior volume.

The downsizing of full-sized sedans by GM was met with success, with the Chevrolet Impala/Caprice becoming the best-selling 1977 vehicle in the United States.

Within Ford Motor Company, the LTD II met a high degree of internal competition from the newly redesigned Thunderbird while sharing the chassis, powertrain, interior and much of the body with similar pricing.

While eliminating the previous model overlap with the Continental Mark series, the redesigned Thunderbird proved highly popular, reducing sales of the LTD II two-door body style.

In addition to slow sales, potential model overlap with the Fairmont (and LTD) led to the discontinuation of the LTD II station wagon after 1977.

As part of a mid-cycle refresh for 1983, the Granada was restyled and renamed LTD. For 1986 the LTD continued production after the introduction of the Ford Taurus which replaced the LTD after the end of the model year.