CONFORMED COPY
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report November 20, 1997
(Date of earliest event reported)
CHRYSLER FINANCIAL CORPORATION
(Exact name of registrant as specified in its charter)
State of Michigan I-5966 38-0961430
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File No.) Identification No.)
27777 Franklin Road., Southfield, Michigan 48034
(Address of principal executive offices)
Registrant's telephone number, including area code (248)948-3067
Item 5. Other Events.
On October 10, 1997, the registrant's parent, Chrysler Corporation,
released its financial statements for nine months ended September 30, 1997.
Chrysler reported earnings before income taxes of $726 million for the third
quarter of 1997, compared with $1,111 million for the third quarter of 1996.
For the first nine months of 1997, Chrysler reported earnings before income
taxes of $3,241 million, compared with $4,501 million for the first nine
months of 1996. Net earnings for the third quarter of 1997 were $441 million,
or $0.65 per common share, compared with $680 million, or $0.93 per common
share, for the third quarter of 1996. Net earnings for the first nine months
of 1997 were $1,953 million, or $2.83 per common share, compared with $2,722
million, or $3.65 per common share, for the first nine months of 1996.
Earnings for the third quarter and first nine months of 1997 include
a $41 million charge ($25 million after taxes) for costs related to the
decision to discontinue Chrysler's Eagle brand at the end of the 1998 model
year. Earnings for the third quarter and first nine months of 1996 included a
charge of $88 million ($55 million after taxes) for costs associated with a
voluntary early retirement program for certain salaried employees. Earnings
for the first nine months of 1996 also included a gain of $101 million ($87
million after taxes) from the sale of Electrospace Systems, Inc. and Chrysler
Technologies Airborne Systems, Inc., and a charge of $65 million ($100
million after taxes) related to a write-down of Thrifty Rent-A-Car System,
Inc.
The decrease in earnings for the third quarter and first nine months
of 1997 compared with the third quarter and first nine months of 1996
primarily reflects a decrease in vehicle shipments and an increase in average
sales incentives per vehicle, partially offset by lower profit-based employee
compensation costs. Chrysler's worldwide vehicle shipments in the third
quarter and first nine months of 1997 were 605,356 units and 2,125,048 units,
respectively, compared with 650,529 units and 2,205,474 units, respectively,
in the third quarter and first nine months of 1996. The decrease in vehicle
shipments for the third quarter of 1997 is primarily related to lower
shipments of Dodge Intrepid and Chrysler Concorde sedans
and Neon compact cars. The lower Intrepid and Concorde shipments are
primarily related to the changeover to Chrysler's all-new Intrepid and
Concorde sedans which began in the third quarter of 1997. The decrease in
shipments for the first nine months of 1997 also reflects lower shipments of
Jeep(R) Grand Cherokees and Dodge Ram pickup trucks resulting primarily from
the unfavorable impact of a 29-day strike that temporarily shut down seven of
Chrysler's assembly plants and certain automotive component operations during
the second quarter of 1997. Also, the increase in average sales incentives
per vehicle and lower vehicle shipments reflect an increasingly competitive
environment resulting primarily from new product offerings from competitors
and greater flexibility in vehicle pricing by Japanese manufacturers who have
benefited from currency exchange rate changes between the Japanese yen and
U.S. dollar.
Item 7. Financial Statements, Pro Forma Financial Information and
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Exhibits.
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Listed below are the financial statements, pro forma financial
information and exhibits, if any, filed as part of this Report;
(a) Financial statements of businesses acquired: None
(b) Pro forma financial information: None
(c) Exhibits: None
SIGNATURES
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Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.
CHRYSLER FINANCIAL CORPORATION
Date: November 20, 1997 By:/s/ Byron C. Babbish
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Byron C. Babbish
Assistant Secretary