Auditors for American Axle & Manufacturing Holdings ( ALX) have questioned the company's ability to continuing operating, a reflection of the depressed state of the auto industry.

In its annual report issued Thursday, American Axle said auditors raised "substantial doubt about the company's ability to continue as a going concern."

The Detroit-based supplier said it is a victim of "the current automotive industry environment and the uncertainty relating to the ability of General Motors ( GM) and Chrysler to continue operating as going concerns," and that it may be unable to comply with financial covenants. GM and Chrysler account for 84% of sales, the company said. On Thursday, however, GM said it wouldn't need a $2 billion loan from the government this month.

Last week, American Axle said it has fallen below New York Stock Exchange listing standards, related to market capitalization and stockholder equity. The NYSE requires that the average market capitalization of a listed company be not less than $75 million over a consecutive 30 trading-day period and that stockholders' equity be not less than $75 million. The company said it will seek to achieve compliance.

Shares were trading Friday morning at 76 cents, up 1 cent.