AM travels a lot further than FM, all other things being equal, and the local frequency is signposted on road signs around the country.
The big three typical emergency broadcasts down under include wildfire (which have, and do kill motorists caught in them), flood, and cyclone.
The problem with 'narrowcast' mediums like mobile phones (inc. SMS), and landline phones, is that mass emergency alerts can overload those networks which can delay the message getting out, and it takes time to contact each endpoint in the alert area. The message they get is also likely to be short.
AM broadcast is immensely useful for non-overloadable continual updates on an emergency (or several emergencies at once). Though like narrowcast mediums, broadcast mediums also have disadvantages.
AM is used as part of a wider solution. Sometimes the only way to get an alert to people is via AM radio. It's much easier to mandate AM radio in vehicles, and never need it, than to allow manufacturers to drop it because 'reasons' and then discover we suddenly can't warn some members of the community because they relied on AM broadcasting (even if they didn't know it at the time).