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Chrysler Corporation to Redeem Debt

3 July 1997

Chrysler Corporation to Redeem Debt

    AUBURN HILLS, Mich., July 3 -- Chrysler Corporation
today announced that it will redeem $512 million of its outstanding debt
consisting of all of its 10.40% Notes due 1999 and 10.95% Debentures due 2017.
The redemption date for the 10.40% Notes and 10.95% Debentures is August 7,
1997.  Notices of redemption of the Notes and Debentures are being mailed to
holders of record of the Notes and Debentures on July 8, 1997.
    The redemption price for the 10.40% Notes will be 100% of the principal
amount of the Notes.  The redemption price for the 10.95% Debentures will be
105.475% of the principal amount of the Debentures.
    The Redemption Agent for the Notes and the Debentures is the Chase
Manhattan Bank, Corporate Trust Securities Window, 55 Water Street, Room 234 -
North Building, New York, New York.

SOURCE  Chrysler Corporation