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EXHIBIT 12
CHRYSLER CORPORATION AND CONSOLIDATED SUBSIDIARIES
COMPUTATIONS OF RATIOS OF EARNINGS TO FIXED CHARGES AND PREFERRED
STOCK DIVIDEND REQUIREMENTS
Year Ended December 31
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1994 1993 1992 1991(1) 1990
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(in millions of dollars)
Net earnings (loss) from continuing operations before
cumulative effect of changes in accounting
principles $3,713 $2,415 $ 505 $ (538) $ 68
Add back:
Taxes on income 2,117 1,423 429 (272) 79
Fixed charges 1,267 1,433 1,732 2,179 2,783
Amortization of previously capitalized interest 87 94 87 86 81
Deduct:
Capitalized interest 177 176 176 162 140
Undistributed earnings from less than
fifty-percent owned affiliates 15 2 7 11 6
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Earnings available for fixed charges $6,992 $5,187 $2,570 $1,282 $2,865
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Fixed charges:
Interest expense $ 937 $1,104 $1,405 $1,869 $2,458
Interest expense of unconsolidated subsidiaries -- -- -- -- 15
Capitalized interest 177 176 176 162 140
Credit line commitment fees 10 10 10 15 6
Interest portion of rent expense 143 143 139 126 119
Gross-up of preferred stock dividends of majority-
owned subsidiaries (CFC) to a pretax basis -- -- 2 7 45
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Total fixed charges $1,267 $1,433 $1,732 $2,179 $2,783
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Ratio of earnings to fixed charges 5.52 3.62 1.48 0.59 1.03
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Preferred stock dividend requirements $ 125 $ 127 $ 128 $ -- $ --
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Ratio of earnings to fixed charges and preferred
stock dividend requirements 5.02 3.33 1.38 -- --
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Equity taken up in earnings of less than fifty-percent
owned affiliates $ 15 $ 2 $ 11 $ 13 $ 8
Deduct:
Dividends paid by affiliates -- -- 4 2 2
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Undistributed earnings from less than fifty-percent
owned affiliates $ 15 $ 2 $ 7 $ 11 $ 6
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(1) In 1991, earnings were not sufficient to cover fixed charges. The coverage
deficiency was $897 million.
NOTE: For purposes of computing the ratios of earnings to fixed charges and
preferred stock dividend requirements, earnings are determined by adding
back fixed charges to earnings (loss) from continuing operations
(including equity in net earnings of unconsolidated subsidiaries) before
taxes on income and excluding undistributed earnings from less than
fifty-percent owned affiliates. Fixed charges consist of interest
expense, credit line commitment fees, the interest portion of rent
expense and the preferred stock dividend requirements of its
majority-owned subsidiaries increased to an amount representing the
pretax earnings that would be required to cover such dividend
requirements.