1
 
                                                                     EXHIBIT 1.2
                      [CHRYSLER CORPORATION LETTERHEAD]
 
William J. O'Brien
Vice President
General Counsel and Secretary
 
                                          July 6, 1995
 
Mr. Lee A. Iacocca
Lee Iacocca & Associates, Inc.
1440 S. Sepulveda Blvd., 3rd Floor
Los Angeles, CA 90025
 
                           OUTSTANDING STOCK OPTIONS
 
Dear Lee:
 
     At a meeting this morning, the Board of Directors of Chrysler Corporation
carefully reviewed the letter submitted on your behalf. Based upon the Board's
review of the requirements of the Plan, the Board has determined that the
conditions precedent to stock option exercise specified in the Plan have not
been satisfied, and that, accordingly, the Company will not process the option
exercise request made on your behalf last week.
 
                                          Sincerely,
 
                                          Bill
 
WJO: mc