March 13, 2009
American Axle says future is uncertain
Auditors for American Axle & Manufacturing said the U.S. auto parts giant was in danger of going under, especially if a big car company retreats.
The Detroit News reported 74 percent of the company's products -- mainly rear-wheel axles for pickup trucks and sports utility vehicles -- are sold to GM. Another 10 percent are sold to Chrysler LLC.
As a result of the current automotive industry environment and the uncertainty relating to the ability of GM (General Motors Corp.) and Chrysler to continue operating as going concerns ... it is uncertain whether we will be in compliance with the financial covenants "¦ throughout 2009, the company said in a Securities and Exchange Commission filing.
Both Chrysler and GM are struggling with sharp sales slumps. In addition, if GM and Chrysler revive themselves, they are apt to produce more smaller vehicles.