Lieblad basically covered it as far as your annealing question goes. As for whether you should do it or not, I understand, if the guy had a sentimental attachment to his old car. If not... well, I probably wouldn't put too much energy into it.

An axle is most likely going to be hardenable to some degree, though it likely won't have as much carbon as 1084. It's probably going to be closer to 1050, or possibly 4140, which, again, while it can get hard, won't make a better knife than the 1084 you may already be used to working with.
As for it's difficulty to forge, are you heating it hot enough? Maybe you need a bigger hammer.

I assume it's less than an 1.5" in diameter?