SARS threatens China growth.(Cover Story)

Byline: Alysha Webb & Wim Oude Weernink

Several European automakers will be severely affected this year if the spread of the SARS virus holds back China's booming new-car market.

Volkswagen, PSA/Peugeot-Citroen, Fiat and others have benefited enormously from last year's unprecedented sales surge of 360,000 passenger cars to 1.1 million units in China. And the Europeans are counting on China for dramatic growth in 2003.

* Volkswagen group last year sold 513,000 passenger-cars in China, compared to 338,000 in the USA. VW expects to sell 600,000 in China this year.

* Citroen sold 85,000 cars in China last year and is targeting about 112,000 sales this year.

* Fiat plans to more than double China sales from 23,000 cars last year and plans to boost production …