Filed Pursuant to Rule 424(b)(3)
Registration No. 33-32484
PRICING SUPPLEMENT NO. 63, dated January 5, 1994
(To Prospectus dated October 7, 1993 and
Prospectus Supplement dated October 7, 1993)
$650,000,000
Chrysler Financial Corporation
Medium-Term Notes, Series L
Fixed Rate Notes
Due 9 Months or More From Date of Issue
Principal Amount: $500,000
Issue Price: 100%
Original Issue Date: January 12, 1994
Stated Maturity: January 12, 1996
Interest Rate: 4.78%
Interest Payment Dates: January 15 and July 15
Specified Currency: U.S. Dollars
(If other than U.S. Dollars, see attachment hereto)
Option to Receive Payments in Specified Currency: [ ] Yes [ ] No
(Applicable only if Specified Currency is other than U.S. Dollars)
Authorized Denominations:
(Applicable only if Specified Currency is other than U.S. Dollars)
Redemption: [X] The Notes cannot be redeemed prior to maturity.
[ ] The Notes may be redeemed prior to maturity.
Initial Redemption Date:
The Redemption Price shall initially be % of the principal amount of the
Notes to be redeemed and shall decline at each anniversary of the initial
Redemption Date by % of the principal amount to be redeemed until the
Redemption Price is 100% of such principal amount.
Repayment: [X] The Notes cannot be repaid prior to maturity.
[ ] The Notes can be repaid prior to maturity at the option of
the holder of the Notes.
Optional Repayment Date(s):
Repayment Price:
Discount Notes: [ ] Yes [X] No
Total Amount of OID:
Yield to Maturity:
Initial Accrual Period OID:
Agent's Discount or Commission: .25%
Agent's Capacity: [X] Agent [ ] Principal
Net proceeds to Company (if sale to Agent as principal):
Agent: [X] Merrill Lynch & Co. [ ] Salomon Brothers Inc
[ ] Other:
<PAGE>
CHRYSLER FINANCIAL CORPORATION
Medium-Term Notes, Series L
The following discussion of Chrysler Financial Corporation (the "Company")
and Chrysler Corporation ("Chrysler") supplements the information contained in
the Prospectus dated October 7, 1993, and related Prospectus Supplement dated
October 7, 1993, and any statement contained in the Prospectus or Prospectus
Supplement shall be deemed to be modified or superseded to the extent that a
statement contained herein modifies or supersedes such statement.
RECENT DEVELOPMENTS
Selected Interim Financial Information of the Company
On October 14, 1993, the Company released its financial statements for the
nine months ended September 30, 1993. The following is certain selected
financial information of the Company with respect to the indicated dates and
periods. For additional information regarding the results of operations and
financial conditions of the Company, see the Company's Current Report on Form
8-K dated October 14, 1993 (the "Form 8-K"), which is incorporated by reference
in the Prospectus. The following selected financial information is qualified
in its entirety by the detailed information contained in the Form 8-K.
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30 September 30
------------------ ------------------
(unaudited) (unaudited)
1993 1992 1993 1992
------ ------ ------- -------
(in millions of dollars)
<S> <C> <C> <C> <C>
Earnings Statement Data:
Total interest income. . . . . . . $ 354 $ 471 $ 1,076 $ 1,493
Interest expense . . . . . . . . . 186 244 613 769
Interest margin. . . . . . . . . . 168 227 463 724
Other revenues . . . . . . . . . . 153 164 474 460
Operating expenses . . . . . . . . 121 139 348 447
Provision for credit losses. . . . 57 84 169 226
Earnings before income taxes and
cumulative effect of changes in
accounting principles. . . . . . 64 74 176 251
Cumulative effect of changes in
accounting principles. . . . . . -- -- (29) 51
Net earnings . . . . . . . . . . . $ 22 $ 45 $ 74 $ 205
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
At September 30,
------------------------
(unaudited)
1993 1992(1)
-------- ---------
(in millions of dollars)
<S> <C> <C>
Balance Sheet:
Finance receivables - net. . . . . . . . . . . . . . . $ 8,863 $ 9,813
Assets held for sale . . . . . . . . . . . . . . . . . -- 2,732
Cash and cash equivalents. . . . . . . . . . . . . . . 254 547
Marketable securities. . . . . . . . . . . . . . . . . 339 323
Due and deferred from receivable sales - net,
and other related amounts. . . . . . . . . . . . . . 2,946 3,256
Repossessed collateral . . . . . . . . . . . . . . . . 241 192
Property and equipment leased to others - at
cost less accumulated depreciation . . . . . . . . . 730 614
Cost in excess of net assets acquired - less
accumulated amortization . . . . . . . . . . . . . . 17 23
Other assets . . . . . . . . . . . . . . . . . . . . . 483 404
Total assets . . . . . . . . . . . . . . . . . . . $ 13,873 $ 17,904
Commercial paper . . . . . . . . . . . . . . . . . . . $ 2,498 $ 409
Bank borrowings under revolving credit facilities. . . 177 6,079
Senior term debt . . . . . . . . . . . . . . . . . . . 4,214 4,519
Subordinated term debt . . . . . . . . . . . . . . . . 242 645
Other debt . . . . . . . . . . . . . . . . . . . . . . 361 442
Accounts payable, accrued expenses and other . . . . . 827 976
Amounts due to affiliated companies. . . . . . . . . . 570 24
Deferred income taxes. . . . . . . . . . . . . . . . . 1,524 1,470
Other liabilities. . . . . . . . . . . . . . . . . . . 388 369
Total Liabilities. . . . . . . . . . . . . . . . . 10,801 14,933
Shareholder's investment:
Par Value of Outstanding Common Stock. . . . . . . . 25 25
Additional paid-in capital . . . . . . . . . . . . . 1,168 1,168
Retained earnings. . . . . . . . . . . . . . . . . . 1,879 1,778
Total shareholder's investment . . . . . . . . . . 3,072 2,971
Total liabilities and shareholder's investment . . $ 13,873 $ 17,904
<FN>
_________________
(1) Reclassified to conform to current classifications.
</TABLE>
<PAGE>
Ratios of Earnings to Fixed Charges
The ratios of earnings to fixed charges of the Company on a consolidated
basis and Chrysler on a consolidated basis for the nine months ended September
30, 1993 and September 30, 1992 were as follows:
<TABLE>
<CAPTION>
Nine Months Ended
September 30,
-------------------
1993 1992
------ ------
<S> <C> <C>
The Company Consolidated . . . . . . . . . . . 1.28x 1.32x
Chrysler Consolidated. . . . . . . . . . . . . 3.31x 1.17x
</TABLE>
The Company Consolidated. The ratios of earnings to fixed charges have been
computed by dividing earnings before taxes on income and fixed charge by fixed
charges. Fixed charges consist of interest, amortization of debt discount and
expense, and rentals. Rentals included in fixed charges are the portion of
total rent expense representative of the interest factor (deemed to be one-
third).
Chrysler Consolidated. For the purpose of computing the ratios of earnings
to fixed charges, earnings are determined by adding back fixed charges to
consolidated earnings from continuing operations (including equity in net
earnings (loss) of unconsolidated subsidiaries) before taxes on income and
excluding undistributed earnings (losses) from less than 50% owned affiliates.
Fixed charges consist of interest expense, credit line commitment fees, and
interest portion of rent expense.
<PAGE>
Selected Interim Financial Information of Chrysler
The results of operations and balance sheet data for Chrysler and its
consolidated subsidiaries as of and for the three and nine months ended
September 30, 1993 and 1992 were as follows:
<TABLE>
<CAPTION>
Three Months Ended
September 30
----------------------
(unaudited)
1993 1992
--------- ---------
(in millions of dollars)
<S> <C> <C>
Results of Operations Data
Sales of manufactured products . . . . . $ 8,995 $ 8,362
Finance and insurance income . . . . . . 352 475
Other income . . . . . . . . . . . . . . 366 379
Total Sales and Revenues . . . . . . . . 9,713 9,216
Total Costs and Expenses . . . . . . . . 9,101 8,857
Earnings (Loss) Before Income Taxes. . . 612 359
Provision (credit) for income taxes. . . 189 157
Net Earnings (Loss). . . . . . . . . . . $ 423 $ 202
Preferred stock dividends. . . . . . . . 20 20
Net Earnings (Loss) on Common Stock. . . $ 403 $ 182
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Nine Months Ended
September 30
----------------------
(unaudited)
1993 1992
--------- ---------
(in millions of dollars)
<S> <C> <C>
Results of Operations Data
Sales of manufactured products . . . . . $ 29,540 $ 24,215
Finance and insurance income . . . . . . 1,087 1,495
Other income . . . . . . . . . . . . . . 1,021 1,011
Total Sales and Revenues . . . . . . . . 31,648 26,721
Total Costs and Expenses . . . . . . . . 29,034 26,433
Earnings (Loss) Before Income Taxes
and Cumulative Effect of Changes
in Accounting Principles . . . . . . . 2,614 288
Provision (credit) for income taxes. . . 976 139
Earnings (Loss) Before Cumulative Effect
of Changes in Accounting Principles. . 1,638 149
Cumulative effect of changes in
accounting principles. . . . . . . . . (4,683) 218
Net Earnings (Loss). . . . . . . . . . . $ (3,045) $ 367
Preferred stock dividends. . . . . . . . 60 49
Net Earnings (Loss) on Common Stock. . . $ (3,105) $ 318
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
At September 30,
----------------------
(unaudited)
1993 1992
--------- ---------
(in millions of dollars)
<S> <C> <C>
Balance Sheet Data
Cash, cash equivalents and marketable
securities . . . . . . . . . . . . . . $ 4,889 $ 4,117
Total assets . . . . . . . . . . . . . . 41,569 41,669
Total debt . . . . . . . . . . . . . . . 11,394 15,897
Shareholders' equity . . . . . . . . . . 6,290 7,171
</TABLE>
