BUSINESS MEMO: SATURN LOSSES

NASHVILLE, Tenn. -- With demand for its signature small cars fading, Saturn Corp. lost an estimated $25 million in 1998 -- its first loss in five years.

Last year, Saturn fended off a threatened strike and defeated efforts to place its 8,000 workers under the contract that covers other GM autoworkers.

But low demand for small cars forced the company to reduce production at its Spring Hill plant. Saturn sold 231,786 cars last year, compared with 251,099 the year before. The company must sell about 243,000 vehicles to break even, said Mike Bennett, an adviser to United Auto Workers Local 1853.

GM vice president Mark Hogan said he and other GM officials decline to specify how much Saturn is losing, but Bennett estimates it's "in the neighborhood of $25 million, give or take $5 million."

Bennett is hopeful the company will produce 270,000 vehicles this year.