Press Release

Chrysler Releases Chairman's Reflections on 1996

12/24/96

Chrysler Chairman Robert Eaton Reflects on the Highlights and
Challenges of 1996

AUBURN HILLS, Mich., Dec. 19 -- By any measure, 1996 was
a great year for Chrysler Corporation . Shareholder value
increased, vehicle sales hit records, market share increased, Company
profits soared, our vehicles won major awards and competitive labor
agreements were reached with the members of the UAW and CAW.

Reflecting on the highlights and challenges of 1996, Robert J. Eaton,
Chairman and Chief Executive Officer of Chrysler, said "Our results in
1996 were outstanding. We owe our success to our products and to our
people, who have worked so hard to get us where we are.

"Our goal for 1997 is to remain focused on controlling our costs and
continually improving our processes and our products," Eaton
continued. "We have to do more of the things that made this year
successful -- things like teamwork, improving quality, focusing on the
customer, taking risks, maintaining a strong balance sheet, taking
care of the shareholder and building the best cars and trucks we can.

"This year we introduced the all-new 1997 Dodge Dakota pickup truck
and it went on to win many awards including those from Four Wheeler,
Sport Truck, Off Road, Automobile and Popular Science magazines. In
addition, the Jeep(R) Wrangler took 4Wheel & Off Road magazine's award
and our minivans won awards from Automobile, Car & Driver and Four
Wheeler magazines. Our cars hit the top of the list with Dodge
Stratus, Chrysler Cirrus and Plymouth Breeze winning awards from Car
and Driver, and the Plymouth Prowler winning the Best of What's New
from Popular Science. The list goes on from here.

"In addition, our sales records include 13 consecutive monthly
year-over- year sales increases, and 13 individual model year sales
records. We also sold our six millionth minivan and the one millionth
Dodge Ram pickup truck during 1996. Our U.S. market share is nearly 16
percent -- 15.9 percent for the year to date. That compares with 14.3
percent for 1995 and in 1991, our share was just 12 percent.

"We expect 1997 to be a good year for the economy as well as for our
industry with sales forecast at 15.2 million vehicles in the
U.S. (including medium and heavy duty trucks). We believe inflation
will be held in check, interest rates should remain stable and the
economy should continue its moderate growth at just under 2.5
percent. We also believe, unfortunately, the dollar will continue to
be overvalued for most of all of the year but both gasoline prices and
oil prices will likely drop by year-end.

"1997 should be a good year to launch the new Plymouth Prowler, Dodge
Durango and Intrepid and Chrysler Concorde. And we expect it to be a
good year for international sales. We'll sell a quarter of a million
units in markets outside of North America, and our international
revenues have quadrupled since 1990.

"In addition, we recently announced a series of management changes
which have enabled us to retain the services of Bob Lutz while
continuing to develop a new generation of management to lead the
Company into the next century. Bob has a wealth of experience and
knowledge on all aspects of our business, and his role as coach,
mentor and advisor will be of great value to the Company."