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[NATIONAL CITY(R)]
NATIONAL CITY CORPORATION
P.O. Box 5756
Cleveland, OH 44101-0756
Exhibit 99.1
NEWS RELEASE
FOR IMMEDIATE RELEASE
Contact: Tom Koch, Media Relations Derek Green, Investor Relations
(216) 575-3202 (216) 222-9849
NATIONAL CITY CORPORATION ANNOUNCES REALIGNMENT
OF CONSUMER FINANCE BUSINESS
CLEVELAND, December 15, 2000 - National City Corporation (NYSE:
NCC) today announced that as part of a realignment of the consumer finance
business, it is closing its 69 Loan Zone(R) retail stores in the U.S., exiting
the wholesale loan origination business of its Pittsburgh-based Altegra
subsidiary, and exiting the automobile leasing business.
"These actions are the result of an ongoing review of our business
portfolio," said David A. Daberko, chairman and chief executive officer of
National City Corporation. "As we focused on where we have a competitive
advantage, it became clear to us that the Loan Zone(R) and the wholesale loan
origination business, along with our auto leasing business did not measure up to
our model for profitability and growth. Our non-prime mortgage business will now
be concentrated in our First Franklin subsidiary." First Franklin Financial,
acquired by National City in 1999, is a leading wholesale originator of
nonconforming home mortgages.
The Loan Zone(R) stores had been operated by National City's
Altegra subsidiary. Following its exit from these loan origination businesses,
Altegra will focus on servicing nonconforming mortgages.
Additionally, National City has decided to exit the auto leasing
business, effective immediately. Auto leasing is part of the dealer finance
business that also includes indirect auto loans, dealer floor plan, and marine
and RV loans, as well as manufactured housing loans.
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"Auto leasing has been an under-performing part of our dealer
finance business," said Peter E. Raskind, executive vice president of National
City Corporation and head of consumer finance. "Dealer finance will continue to
be an important segment of our consumer finance line of business as we focus on
growing our indirect auto and dealer floor plan, marine and RV loans as well as
manufactured housing, motor sports and home improvement lending."
In conjunction with the foregoing actions, the company expects to
record pre-tax charges in the range of $43 to $46 million in the fourth quarter
for severance costs and asset writedowns including lease residual values and
goodwill. Approximately 200 staff will be affected by the realignment.
This press release contains certain forward-looking statements (as
defined in the Private Securities Litigation Reform Act of 1995) that reference
future financial performance. They are based on the beliefs, assumptions, and
information currently available to National City's management at the time of the
release. Such forward looking statements involve significant risks and
uncertainties, including changes in general economic and financial market
conditions, and other factors, presently unforeseen, that could affect the
Corporation's ability to execute its plans. Although National City believes that
the expectations reflected in such forward looking statements are reasonable,
actual results may differ materially.
ABOUT NATIONAL CITY
National City Corporation (NYSE: NCC) is an $85 billion financial holding
company based in Cleveland, Ohio. The company offers a full range of financial
services including investment banking, brokerage, mutual fund, insurance and
traditional banking services to individuals and businesses. National City has
offices in Ohio, Pennsylvania, Michigan, Indiana, Kentucky and Illinois.
National City can be found on the World Wide Web at www.national-city.com.
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