1
                                                                     EXHIBIT 1.1

                      [CHRYSLER CORPORATION LETTERHEAD]

  William J. O'Brien
  Vice President
  General Counsel and Secretary
BY FACSIMILE AND REGISTERED MAIL


                                                      June 30, 1995



Mr. Lee A. Iacocca
Lee Iacocca & Associates, Inc.
1440 S. Sepulveda Blvd., 3rd Floor
Los Angeles, CA 90025


                          Outstanding Stock Options


Dear Lee:

        We were advised on Wednesday that you would like to exercise one of
your outstanding stock options. Upon receipt of this request, we reviewed the
status of your stock options with the Directors of Chrysler Corporation.

        The Directors considered whether the conditions precedent to the
exercise of your stock options described in Paragraph 8 of the Chrysler
Corporation Stock Option Plan have been satisfied. Paragraph 8 states that "the
exercise of any option after termination of employment [including termination
by reason of retirement] shall be subject to satisfaction of the conditions
precedent that the Option Holder neither, (a) takes other employment or renders
services to others without the written consent of the Corporation, nor (b)
conducts himself in a manner adversely affecting the Corporation."  These
conditions apply to the exercise of all outstanding options granted by
Chrysler.

        Based on available information, including the Schedule 13D and
amendments filed by Tracinda Corporation and yourself, the Schedule 14D-1 and
amendments filed by Tracinda, your Consulting Agreement and Value Sharing
Agreement with Tracinda filed as exhibits to this Schedule 14D-1, and public
comments made by you and Tracinda, it is the view of the Directors that the
conditions to exercise set forth in Paragraph 8 have not been satisfied and
that the Company should not process the option exercise request made on your
behalf earlier this week.

        If you wish to submit any information regarding this matter for review
by the Board at its July meeting, please forward such information to me in time
for receipt by no later than 12:00 noon EDST on Wednesday, July 5.


                                           Sincerely,

                                           Bill



WJO:mc

Chrysler Corporation
12000 Chrysler Drive
Highland Park, MI 48288
313-956-5252