Mercedes-Benz Recalls Over Half a Million Vehicles in China on Safety Concerns

By Dominic Chopping

Mercedes-Benz and its Chinese joint venture company that it owns with BAIC Motor will recall more than half a million older models in China on safety concerns, the state market regulator said Friday.

The recall relates to a total of 523,094 imported and domestically produced vehicles and covers certain models manufactured between 2011 and 2019.

China's State Administration for Market Regulation said that some of the vehicles have been found with faulty material in a wheel speed sensor which, under extended use in hot and humid conditions, can cause malfunctions in features such as anti-lock braking and a safety function that helps avoid skidding.

The recall is effective from Nov. 27, 2024.

The news comes after Mercedes-Benz late Thursday cut its margin guidance for the second time in under two months amid ongoing weakness in China.

German rival BMW last week cut its forecasts for profitability and sales volumes after reporting soft car sales in China on top of expensive recall costs to fix a braking-system problem.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

September 20, 2024 05:40 ET (09:40 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.