Ford Motor Co. (F) plans to trim its second-quarter production by 38% in another sign that the U.S. recession is deepening.

The auto maker plans to produce 425,000 vehicles, compared with 685,000 for the same period in 2008, the Dearborn, Mich.-based company said in a statement on Tuesday. The company expects to build 135,000 cars and 290,000 trucks during the quarter.

Ford disclosed last week it was cutting its first-quarter output by 25,000 vehicles to 375,000 vehicles. It also estimates total sales to fall as low as 10.5 million units for the year.

"A key element of our strategy to build our reputation and improve resale values is to align our production with consumer demand," said Ken Czubay, Ford's vice president of sales and marketing. "Our disciplined approach to the market in these challenging times helps us to minimize costly incentives which erode brand value."

Ford said in mid-2008 it would reduce output rather than stockpiling unsold cars and trucks, intensifying pressure on dealers and eroding residual values.

Toyota Motor Corp. (TM) has told its suppliers it expects its worldwide production to drop about 12% during the next fiscal year to its lowest level in seven years. The company projects manufacturing about 6.2 million vehicles in the fiscal year starting April 1, compared with an estimated 7.08 million this business year, The Wall Street Journal reported Tuesday.

Ford shares fell 2.1% to $1.84 in earlier trading Tuesday.

-By Jeff Bennett, Dow Jones Newswires; (248) 204-5542; jeff.bennett@dowjones.com