Benz Group AG cut its financial forecast for the year due to a rapid deterioration of its business in China, marking the latest blow to Germany’s struggling industrial sector.Adjusted returns in the main cars unit are now expected in a range of between 7.

The German luxury carmaker said the move was triggered by the further deterioration of the macroeconomic environment, specifically in China.

Mercedes-Benz Group AG (OTCPK:MBGAF) (OTCPK:MBGYY) said Thursday it now sees full-year EBIT and free cash flow to be "significantly below" from prior year levels hurt by a challenging macroeconomic environment,

Mercedes-Benz said on Thursday it has cut its full-year core profit forecast after overall sales volume fell in China.

Mercedes has ended its last relationship in China, which shows how difficult it is for legacy car companies from Europe, the US, and Asia to remain in the Chinese market while making a profit. According to The Wall Street Journal,

Benz on Thursday cut its full-year profit margin for the second time in less than two months, after overall sales volume fell in China. The ongoing weakness of the Chinese market for luxury cars prompted the Stuttgart carmaker to trim its outlook after having already done so as recently as July.