Auto retailer Group 1 Automotive Inc. (GPI) said Thursday it will slash orders for new cars and trucks following a $44.5 million fourth-quarter loss, a move that bodes poorly for Detroit's beleaguered auto makers.

General Motors Corp. (GM) and Chrysler LLC are pleading with dealers to keep ordering new vehicles in hopes of slowing a revenue slide that's pushed the auto makers to the brink of bankruptcy.

But dealers, many of whom are saddled with costly excess inventory amid a dramatic sales decline, are pushing back.

"We are stuffed full with probably twice as much as what we need," Group 1 Chief Executive Officer Earl Hesterberg said Thursday. "It's not a matter of stretching just a little bit further. We are so overstocked, it's just not responsible to be adding."

That's bad news for GM and Chrysler as they scramble to convince the U.S. government they can survive without continual federal aid. The auto makers, which received $17.4 billion in federal loans and are asking for as much as $16.6 billion more, have until March 31 to prove they are on the path to becoming viable. If they fail to make the case, they could lose the funding they already received.

Both auto makers have asked their dealers, many of whom are saddled with costly excess inventory, to keep ordering new cars and trucks to keep revenue flowing into the companies as they work to sway government officials.

Hesterberg said Chrysler has held "numerous" meetings with dealers in recent weeks to push more vehicle orders.

"We're receiving pushback, and Chrysler is clearly more aggressive than General Motors," he said.

The company plans to reduce inventory by around 20%, or $150 million, in the first quarter, he said.

AutoNation Inc. (AN), the nation's largest retail chain, also plans to reduce vehicle orders.

The Houston-based retail chain was hit last year by slumping vehicle demand and charges associated with declining store values.

"It's no surprise consumer confidence has fallen to historic lows and consumers are staying out of showrooms," Group 1 Chief Executive Officer Earl Hesterberg said during a conference call with analysts. "I can no longer tell you that there is any brand that is appreciably better than another. It's bad across all regions and all brands right now."

Consumers, hit by rising unemployment, tight credit availability and economic turmoil that's draining retirement funds and driving down home values, are steering clear of vehicle showrooms.

Despite the loss, Group 1's operations were profitable, excluding charges, and exceeded analysts' expectations for the previous quarter.

Group 1's loss, of $44.5 million, or $1.96 a share, comes following a year-ago profit of $5.5 million, or 24 cents a share. The results include $67 million in noncash charges to write down lost value of dealership acquisitions and a $21 million gain from a debt repurchase. The company for the full year lost $31.5 billion compared to a profit of $68 million in 2007. Revenue fell 8% in 2008 to $5.7 billion.

Not including those items, the company's had operating profits 8 cents a share, compared to 5 cents a share forecast by analysts polled by Thomson Reuters.

Group 1 plans to cut annual operating expenses by $100 million, substantially more than the initial plan to cut $35 million. Reductions will include salary reductions, job cuts and reductions in advertising. The company will also suspend its dividend.

Group 1 shares closed down 45 cents, or 5.7% at $7.42 Thursday.

-By Sharon Terlep, Dow Jones Newswires; 248-204-5532