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American Axle & Manufacturing Holdings Inc. (AXL) said Friday it's bracing for a major revenue slide and troubles at smaller suppliers - a potential sign of things to come as Chrysler LLC and General Motors Corp. (GM) race to restructure in and out of bankruptcy court.

American Axle said Friday it expects to lose $250 million in sales revenue as GM and Chrysler shut down most of their factories for much of this summer. Chrysler's move Thursday to seek bankruptcy protection adds more volatility to the mix.

The parts maker said it remains relatively insulated from losses related to Chrysler's bankruptcy. But Chief Executive Richard Dauch said the company is closely "assessing" its base of suppliers, which may be more vulnerable because bankruptcy proceeding could slow payments due to the companies.

Dauch described what he expects to be a "brutal" year for the auto industry.

Though Chrysler said the plant shutdown will be no longer than the 60-days the company expects to be in bankruptcy court, Dauch said his company is preparing for a drought that could last "for some indefinite time that no one really knows."

His comments came as American Axle announced its first-quarter loss widened to $32.7 million, from $27 million a year ago, largely as a result of major production cuts by virtually every auto maker. The results beat analysts' expectations, though Dauch has backed off comments that the company would return to profitability in 2009.

GM and Chrysler comprise the bulk of American Axle's business, though the company has moved to diversify its customer base in recent years.

American Axle shares were up 9 cents at $1.09 in recent trading. The stock has given up 95% of its value over the past 12 months.

Chrysler on Thursday said it is planning to temporarily idle all its U.S. plants starting Monday for the duration of bankruptcy. The company is asking that it be able to continue paying suppliers with their debtor in position financing.

A U.S. Treasury program to back receivables to supplier in the case of an auto maker bankruptcy also will help cushion the effect of Chrysler's bankruptcy.

But the shutdowns at GM and Chrysler, along with substantial production cuts and their healthier rivals, threaten the already fragile supply base. Many suppliers large and small are either in bankruptcy or on the verge of it.

"There will be a big hit to revenue," said Dave Andrea, vice president of industry analysis and economics for the Original Equipment Suppliers Association. "Many of these companies had just been able to get to a break-even cash position."

-By Sharon Terlep, Dow Jones Newswires; 248-204-5532; sharon.terlep@dowjones.com.