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UPDATE 1-Daimler to recall 2.6 million Mercedes-Benz cars in China

(Adds Daimler comment, detail, background)

BEIJING, March 12 (Reuters) - German luxury automaker Daimler will recall 2.6 million Mercedes-Benz vehicles in China due to a software design issue, the country’s market regulator said on Friday.

Software may fail to communicate a vehicle’s correct location in the event of a crash, China’s State Administration for Market Regulation said in a statement. Daimler declined to comment further on the recall.

Last month Mercedes-Benz USA said it was recalling 1.29 million vehicles sold since 2016 for a similar reason.

Reporting by Yilei Sun and Tony Munroe; editing by Jason Neely

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