For the 1978 model year, Ford released the second generation of the Bronco. To better compete with the Chevrolet K5 Blazer, Dodge Ramcharger, and Jeep Cherokee, the Bronco entered the full-size SUV segment.[16] In place of a model-specific chassis, the Bronco was adapted directly from the Ford F-Series, becoming a shortened version of the F-100 4x4.[16]

Originally intended for a 1974 launch, the second-generation Bronco (named "Project Shorthorn" during its development) was postponed to 1978 in response to fuel economy concerns related to the 1973 fuel crisis; the second-generation Bronco was released for sale after development was nearly finalized on its 1980 successor.[16] In a notable break from a period of downsizing in the American automotive industry, the second-generation Bronco grew significantly in size (though the change was intentional). The adoption of the F-Series design added 12 inches of wheelbase, approximately 28 inches of length, 11 inches of width, and 4 inches of height; based on powertrain configuration, the 1978 Bronco gained 1,100 to 1,600 pounds of curb weight over its 1977 predecessor.