For 1972, the second-generation Montego was introduced alongside the redesigned Ford Torino. In a major design shift, intermediate-size Ford/Mercury model lines shifted from unibody to body-on-frame construction; similarly to the General Motors A-platform, the Montego adopted a split-wheelbase
chassis (114-inch for two-doors, 118-inch for four-doors and station wagons). True four-door hardtops were replaced by "pillared hardtops" (frameless door glass remained, supported by a thin B-pillar), while two-door Montegos retained hardtop roofs, though with much wider C-pillars. The Cyclone had reverted from a stand-alone model line to an option package for 1972 for the Montego; only 30 1972 Cyclones would be produced, making it among the rarest Mercury vehicles. As a replacement for the Cyclone, Mercury introduced the Montego GT, a counterpart of the Ford Gran Torino SportsRoof for the first time; the Montego GT was offered from 1972 to 1973. As a standard engine, the Montego was equipped with a 250 cubic-inch inline-six, with five different V8 engines available as options. Starting in 1974, the Mercury Montego was available with a 460 V8, shared with the Mercury Marquis/Colony Park. The redesign was initially met with success, as 1972 Montego sales increased 136% over 1971; the MX Brougham saw the largest increases in sales, as the two-door increased its sales by 897% while the four-door increased by 1,021%. Following the
1973 gas crisis, sales of the model line began to trend lower in response to industry-wide fuel economy concerns. For 1974, the
Mercury Cougar XR7 adopted the body of the Montego two-door hardtop, now the counterpart of the
Ford Elite, the Cougar was repackaged as an intermediate-size personal luxury car. While the notchback roofline remained for the two-door hardtop (though rear side windows became fixed in place, with an opera window added as an option), the fastback Montego GT hardtop was dropped. For 1975, the engine lineup was revised, as all Ford/Mercury intermediates dropped the inline-6 and 302 V8; a 351 V8 became the standard engine, with optional 400 and 460 V8s. Sales of the Montego dropped further; in addition to the Cougar competing directly against the two-door Montego, the smaller
Mercury Monarch attracted buyers shifting away from full-size and intermediate cars towards compact cars offering increased fuel efficiency. For 1976, the Montego saw only nominal changes, centered primarily on improving fuel efficiency of the V8 engines. The Torino-chassis intermediates underwent a mid-cycle redesign for 1977, with Ford shifting several nameplates. Mercury rebranded the Montego as a fourth generation of the Cougar; in addition to the flagship Cougar XR7 personal luxury coupe, the Cougar offered two-door and four-door sedans and a station wagon. Following a substantial exterior revision, the Torino/Gran Torino was rebranded as the
Ford LTD II, with the Ford Elite replaced by a
downsized Ford Thunderbird (becoming a counterpart of the Cougar XR7). File:Mercury Montego GT green.jpg|1972 Mercury Montego GT 2-Door Fastback File:1973 Mercury Montego GT 2-Door Hardtop.jpg|1973 Mercury Montego GT 2-Door Fastback File:1974 Mercury Montego MX Villager, front left (ISWC meet, July 15, 2023).jpg|1974 Montego MX Villager station wagon File:1974 Mercury Montego MX Brougham interior.jpg|1974 Montego MX Brougham interior File:'75 Mercury Montego (Cruisin' At The Boardwalk '10).jpg|1975 Mercury Montego 2-Door Hardtop ==Third generation (2005–2007)==