Mercedes-Benz Group AG cuts its financial forecast for the year as the luxury-car maker cited a rapid deterioration of its business in China.

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 said on Thursday it has cut its full-year core profit forecast after overall sales volume fell 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,

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.

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,