DETROIT (Dow Jones)-Auto retailer Group 1 Automotive Inc. (GPI) said Thursday it will accelerate cost-cutting moves and cut orders for new cars and trucks following a $44.5 million fourth-quarter loss.

The Houston-based retail chain was hit last year by slumping vehicle demand and charges associated with declining store values. Despite the loss, Group 1's operations were profitable, excluding charges, and exceeded analysts' expectations for the previous quarter.

But the news bodes poorly for beleaguered Detroit auto makers, which have been urging dealers to avoid cutting vehicle orders in hopes of slowing a revenue slide that has pushed General Motors Corp. (GM) and Chrysler to the bring of bankruptcy.

"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.

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.

Along with the cuts, the company will address slumping demand by further reducing inventory by around 20%, or $150 million, in the first quarter.

That's bad news for GM and Chrysler as they scramble to convince the U.S. government they can survive without 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.

Group 1 shares were down 22 cents, or 2.8% to $7.65 in recent trading.

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