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Renault Samsung Motors Corp. will partner with Lynk & Co. to develop an environment-friendly vehicle in the Korean market and develop a Renault-brand hybrid passenger car for sale in China.
Lynk & Co. is the automotive brand formed as a joint venture between China's Geely and Volvo.
Renault Samsung needs a new model after its XM3 compact SUV to boost its sales in South Korea.
The French carmaker had plans to quit its main passenger car business in China after its loss-making venture with Dongfeng Motor Group, but the joint company with Geely means Renault changed its mind.
From January to July, Renault Samsung's sales plunged 13 percent to 66,959 vehicles from 76,588 units last year.
