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: September 25, 1998
                      (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.

        Chrysler Financial Corporation plans to convert from a corporation to
a limited liability company ("LLC") on or about October 25, 1998. Conversion
to an LLC will have no effect on the day-to-day operations of the company.

        The new LLC will be the surviving legal entity of a merger between
Chrysler Financial Company L.L.C., a newly created Michigan limited liability
company, and Chrysler Financial Corporation.

        Chrysler Corporation, which currently owns all of the capital stock
of Chrysler Financial Corporation, will be the sole member (owner) of
Chrysler Financial Company L.L.C.

        Upon the merger, Chrysler Financial Company L.L.C. will succeed to the
operations of Chrysler Financial Corporation and will acquire its assets 
and assume its debt and other obligations.


Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.

        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


        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: September 25, 1998            By:  /s/Byron C. Babbish
                                       ---------------------
                                        Byron C. Babbish
                                        Assistant Secretary