AMERICAN MOTORS <AMO> STATEMENT QUALIFIED American Motors Corp said its auditors qualified the company's 1986 financial report. The report was qualified due to uncertainties surrounding the previously announced arbitration award against American Motors' former subsidiary, AM General Corp. The award is being contested. The report was filed today with the Securities and Exchange Commission along with a copy of Chrysler Corp's <C> proposal to take over American Motors. American Motors said earlier than an arbitration award, made to Emerson Electric Co <EMR> in February, amounted to 60 mln dlrs plus legal expenses. American Motors has challenged the award. The automaker sold the AM General unit to LTV Corp <QLTV> in 1983, the same year it was awarded a five-year, 1.2 billion dlr procurement contract with the military. LTV and AM General last year sought protection under Chapter 11. The arbitration proceeding was called after Emerson Electric charged AM General violated an agreement covering the development of certain components in the contract. The components were for the military's "High Mobility Multi-Purpose Wheeled Vehicle" (HMMWV), American Motors said. In selling AM General to LTV, American Motors agreed to indemnify LTV against losses incurred by LTV resulting from the Emerson Electric claims. AMC also said the award has not been confirmed by a court, and faces additional legal challenges. It said that, because of the LTV and Am General reorganizations, the final amount of a confirmed award and the amount of any loss to LTV is uncertain.