Mercedes-Benz and its Chinese joint venture with BAIC Motor will recall a total of 523,094 imported and domestically manufactured vehicles in China over potential safety hazards, China's market regulator said on Friday.

Mercedes-Benz Group shares fell 8% on Friday after the German carmaker made another cut to its full-year guidance, citing a slowdown in car sales caused by a slump in China’s economy.

Mercedes-Benz Group lowered its full-year outlook, a move it said was triggered by the further deterioration of the macroeconomic environment, specifically in China.The German luxury car brand on Thursday said its cars unit is now expected to post an adjusted return on sales between 7.

Mercedes-Benz cut its full-year profit margin target for the second time in less than two months, hitting European auto stocks as it joined a growing number of rivals that are blaming a weakening Chinese car market,

Chief executive Ola Källenius told analysts on Friday that the company’s issues stemmed “mainly [from] China” but added that in other markets, such as Europe, Mercedes-Benz was also still feeling “the [impact] of higher interest rates”.

Mercedes-Benz Group AG Chief Executive Officer Ola Källenius pledged he’ll do whatever it takes to bolster returns after the luxury-car maker warned on profit over sluggish sales in China.

The German carmaker’s shares started Friday with an almost 7% drop as the company significantly cut its expected results for the full year because of weakness in Chinese demand for its vehicles. View