Daimler has removed a senior executive from his role running a Chinese business after he was accused of yelling racist abuse during an altercation over a car parking space in Beijing.

Chinese media reported that Rainer Gaertner, president of Daimler Trucks and Buses (China), lost his temper during a quarrel on Sunday and screamed: “I am in China one year already. The first thing I learned here is that all you Chinese are b*****ds.” He is also alleged to have pepper-sprayed an onlooker who tried to intervene.

Germany’s Daimler, parent of Mercedes-Benz, said it “sincerely” apologised for the concerns raised by the incident. Although it did not identify Mr Gaertner by name, it stated that a member of its management team at Daimler Trucks and Buses (China) had been “relieved” of his position.