Oregon-based Lithia Motors Inc. has pulled the plug on an auto dealership under construction in Urbandale, a city official said today.

The company, which has acquired several metro-area automobile dealerships in recent years, planned a 20,038-square-foot showroom on about 7.5 acres located north of Hickman Road and east of 104th Street.

Lithia announced May 1 that it was cutting costs, largely in the area of personnel, as the result of a 9.7 percent drop in sales during the first quarter of the year, losing $1.9 million from continuing operations compared with earnings of $7.2 million a year ago.

Urbandale Community Development Director Paul Dekker noted that Lithia had made improvements to the property after the City Council approved site plans last year.

The site has been graded, some footings have been poured and permits have been issued, he said.

“It was moving along pretty well,” Dekker said.

According to the Polk County assessor, the parcel was valued at $2.7 million prior to the start of the Lithia development.