Press Release

Chrysler Announces Increase in Dividend and More Share Buybacks

12/09/96

Chrysler Announces Increased Dividend and Share Buyback Program

AUBURN HILLS, Mich., Dec. 5 -- Chrysler Corporation
today announced that its Board of Directors has voted to
increase its annual dividend from $1.40 to $1.60 a year and increase
its share buyback program from $1 billion to $2 billion for 1997. The
new quarterly dividend of $0.40 per share is payable January 15, 1997,
to shareholders of record on December 15, 1996.

The action represents the seventh dividend increase in the past three
years and takes the share buyback program to $5 billion since the
program was started in 1995. Since September, 1993, Chrysler has
increased its dividend by 433 percent.

"We've said that subject to market conditions we'd return excess cash
to our shareholders, and today's action is another indication that
we're keeping our promise," said Robert J. Eaton, Chrysler Chairman
and Chief Executive Officer.

"The Board has reviewed our long range business plan and our projected
outlook for 1997. They are positive about the Company's prospects and
believe that, based on the current economic outlook, the increased
dividend is sustainable and the buyback can be accomplished while the
Company continues to fund its aggressive product and marketing
programs."

Chrysler will introduce several new vehicles in 1997, including the
Dodge Durango sport utility vehicle, the Plymouth Prowler roadster and
the Chrysler Concorde and Dodge Intrepid sedans, and has a number of
new vehicle programs underway for subsequent years.

Since Chrysler's 1996 $2 billion share buyback program has been
completed, the Board authorized Company officials to begin the 1997
buyback program immediately, subject to market conditions. Chrysler
has repurchased 108 million of its shares in the buyback program and
had 714 million shares outstanding at the end of the third quarter.

"We've had outstanding results in 1996, from major product awards for
our new Jeep(R) vehicles and minivans to record sales and market share
increases.  This is the right time to take these actions for our
shareholders," Eaton said. "We're confident about Chrysler's future
and we know that we need to stay focused on controlling our costs and
continually improving our processes and our products," Eaton
concluded. "We've worked hard to get where we are and we're going to
do everything we can to maintain the momentum we've built."

The Board also declared a dividend of $1.15625 per depositary share,
each representing one-tenth of a share of the Company's Series A
Convertible Preferred Stock, payable January 15, 1997, to shareholders
of record on December 15, 1996.