The Focus Mk II, codenamed C307, uses a new platform called C1 shared with the Volvo S40, Mazda3 and Focus C-Max. It was launched at the Paris Motor Show on September 23, 2004 as a three and five-door hatchback and a station wagon. The four-door sedan version was previewed as a concept developed by Ford Australia at the Beijing Motor Show in mid-2004 and joined the range after the hatchbacks. This new Focus is also built in South Africa for export to Australia and New Zealand.

The Focus Mk II is larger than its Mk I predecessor with a 25 mm (1 in) increase in wheelbase, 168 mm (6.6 in) longer, 8 mm (0.3 in) taller and 138 mm (5.4 in) wider. As a result the interior and boot space has increased. The car has a more Italianate feel in its exterior styling. New technologies include a KeyFree system, a solar-reflect windshield, adaptive front lighting, Bluetooth hands-free phones and voice control for audio, telephone and climate control systems. The interior and dashboard are made from far higher quality plastics than before, and the overall feeling of solidity of the car has been increased markedly in a deliberate attempt to emulate the standards set by the Volkswagen Golf. It also features either a Durashift 6-speed manual, Durashift 4-speed automatic transmission or the all-new Durashift advanced manual transmission or just the standard manual.

Stylistically, the Mk II's styling has been criticised by the motoring press for what some perceive as a lack of flair, originality and boldness of its predecessor. Interestingly the new car uses styling features from the abandoned B-Proposal for the original Focus which were never signed off for production. The interior design has not faced such harsh criticism with many journalists believing it represents a significant improvement through more sober styling and better quality plastics than the ageing first generation design.

There is much talk about a cabriolet (convertible) version, named the Vignale, designed with Pininfarina and due to be lauched in 2006. The vehicle will have a metal folding roof. Another new model is the Focus ST. It uses the same powerplant from the Volvo S40 T5, a turbocharged 2.5 L 5-cylinder engine capable of achieving 220 hp DIN (162 kW).