Interstate National Dealer Services (INDS) has pulled the plug on Uautobid.com.

"After extensive review and evaluation, Interstate has decided to discontinue the operations of the company's subsidiary, UautoBid.com," said Chester J. Luby, chairman and CEO of INDS. "The rapidly changing and highly competitive Internet car buying landscape has raised the stakes more rapidly than envisioned, bringing a level of risk that was more than we expected or are willing to tolerate."

The company has taken a charge this quarter of $305,062, or $0.07 per share, in connection with this decision, according to Luby. "All costs related to the UautoBid venture have been accounted for currently and there will be no residual impact on future results," he said.

"Our core service contract business remains strong," Luby continued, "and we are aggressively pursuing many opportunities to further build on the strong market position and capabilities that we have developed. Some of the skills and applications that UautoBid developed may be helpful in this pursuit, without requiring further investment on our part."

Interstate provides service contracts and extended warranties, primarily for new and used cars and recreational vehicles. For more information on the company, visit http://www.inds.com.