Germany’s Daimler ended a tumultuous 11-year relationship with Chrysler on Monday, agreeing to forgive repayment of $1.9bn in loans to the beleaguered Detroit carmaker and to contribute hundreds of millions of dollars to its pension plan.

Daimler began its transatlantic foray in 1998 amid high hopes of diversifying beyond its Mercedes brand into the mass market. But the relationship ended with Chrysler in deep financial difficulty and the German carmaker accused of contributing to the mess.