The losses were higher than anticipated, executives conceded, but include $1 billion in charges and costs, mostly related to labor agreements, attrition, plant closings and other restructuring efforts. The Detroit supplier had to downsize to deal with a 43 percent year-over-year decline in light-truck production, especially traditional body-on-frame trucks, compared with 2007. It forced American Axle to change its business model and accelerate restructuring to meet the new, smaller, and car-based market head on, Dauch said. The supplier cut its North American capacity by a whopping 70 percent, with just a few closures, such as a Detroit forging plant, still to be wrapped up in the first half of this year, said Michael Simonte, chief financial officer. And 350 salaried workers were let go. Conversely, AAM is increasing capacity elsewhere by 150 percent. A joint venture with JAC Group in China to make driveline and chassis components will go into operation Sunday and there are new plants in the works in Brazil, Mexico, Poland, Thailand and India. American Axle also is expanding its all-wheel-drive portfolio and commercial truck side. But the company remains reliant on General Motors Corp. for 74 percent of its business and GM's drop in inventory cost the supplier $325 million in sales and $100 million in earnings, Simonte said. Chrysler accounts for 10 percent of its business. Despite lower volumes, it is business as usual with GM and Chrysler, both of which are working on viability plans in return for government aid. Simonte said AAM collected three-quarters of its accounts receivables from the automakers this month, and is experiencing 'no delays and no surprises.' AAM was one of the first auto companies to experience difficulties and hopes 'we will be one of the first out,' Dauch said. That may turn out to be the case, said Charles Chesbrough, senior economist with CSM Worldwide in Northville. AAM did have horrible earnings, but has done massive cuts and restructuring. The question is whether it is enough to hang on until later this year when sales are expected to pick up. A lot also depends on GM's viability plan and how it is received by the government, he said.