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Purchased my car new in 9/08, car was perfect up to now but after 12 mo. it started smelling MOLDY, after checking around I found water had accumilated under the carpet in the passenger side, took it to the shop and they said that the AC condenser was leaking inside the passenger side of car, flooding the front passenger side and rear area under the carpets.
According to what I have read on other forums, that's a common problem with the 2008 Malibu.
The shop changed out all the carpets and padding plus they say they cleaned in interior with a solution to get rid of the mildew and moldly smell, but the MOLDY smell was still there.
Next they sprayed the ac inside the car with some kind of spray that was to get rid of the smell per GM, after doing that twice, it still smell Moldy, but not as much.
Have to return next week and see what's next!
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Thats got to be very frustrating with a fairly new car still under warranty. I wander if the smell has now seeped into the fabric and whatnot of the seats. Ask them to replace them, I would def not want to put up with that smell.