The Federal Reserve could leave interest rates unchanged until 2012, if it follows the pattern set after the previous two recessions, says James Bullard, president of the Fed’s St. Louis bank.

That would be far longer than economists have anticipated. The central bank has said it will leave rates “exceptionally low” for an “extended” period. But some economists think that could mean an interest rate hike in the second half of next year. The key overnight bank lending rate has been a range of zero to 0.25% since December.

Bullard cautions that the Fed’s experience in the aftermath of the 2001 recession could “weigh heavily” on central bankers. Economists opine that prolonged low interest rates in mid-decade contributed to the housing bubble.

Bullard is not a member of the policy-setting Federal Open Market Committee now, but he will be next year.

President Barack Obama tells Fox News his administration doesn’t intend to interfere in General Motors Co.’s decisions, specifically whether the company uses U.S. bailout funds to help rescue its Opel unit.

GM says it plans to contribute a “sizable” portion of the €3 billion needed to restructure Opel, although it also is seeking loan guarantees from the European countries that host Opel and Vauxhall plants. It has been unclear whether the terms of GM’s loans from the U.S. Dept. of the Treasury would allow it to use that money to fund overseas operations.

The government now owns a 60.8% stake in GM, but Obama reiterates that his administration is not going to get involved in running GM.

German Chancellor Angela Merkel telephoned Obama early this month to complain when GM decided to keep Opel instead of selling it to Canada’s Magna International Inc. and Russia’s OAO Sberbank, as Berlin had urged. Germany and Russia have warned the decision could hurt their relations with the U.S.

Obama also tells Fox he’s “pleased” GM plans to begin repaying a $6.7 billion term loan to the U.S. next month, sooner than expected. “That’s something we’d encourage,” he says.

The White House’s auto task force was “completely surprised” earlier this month when General Motors Co. scrapped plans to sell its Opel unit to Magna International Inc. and OAO Sberbank, Reuters reports.

Ron Bloom, the task force’s senior adviser, tells the news service the panel was expecting the company to approve the deal. He says the unexpected decision underscores the independence of GM’s board of directors. He says the task force “absolutely did not” ask the board to reconsider.

Bloom acknowledges that the timing of the board vote was awkward because it coincided with a Washington, D.C., visit by German Chancellor Angela Merkel, who strongly advocated the sale. Politicians and the press in Germany criticized the White House for not warning Merkel of GM’s U-turn. But Bloom says the administration wasn’t supposed to be privy to the board’s deliberations. By all accounts, GM’s directors didn’t began to seriously considering canceling the deal until the night before their decision.

Bloom says GM’s board has authorization to invest the company’s money in overseas operations, if it judges that the investment will make the company stronger. He notes GM pumped $413 million in capital into its GM Daewoo Auto & Technology unit last month to keep the South Korean unit afloat. He says the Obama administration won’t be involved in GM’s efforts to round up financing for Opel’s restructuring from the European countries that host its facilities, although he says it could be consulted.

Twenty-seven vehicles-19 cars and eight SUVs-have been designated “top safety picks” for the 2010 model year by the Insurance Institute for Highway Safety.

The Arlington, Va.-based institute says the list shrunk from 94 top picks a year ago in part because many models didn’t excel in the new test of roof strength added this year. IIHS says cars such as the Honda Accord and Ford Fusion sedans were dropped from the 2010 list because they were rated only a second-best “acceptable” in protecting occupants in a rollover accident.

To qualify as a top pick, a vehicle must be equipped with electronic stability control and earn the top rating of “good” in tests for roof strength and protection in front, side and rear collisions.

Ford has six top picks: four for Volvo and one each at the Ford and Lincoln brands. Subaru and Volkswagen, including its Audi brand, each have five top-rated vehicles. Chrysler’s Dodge, Jeep and Chrysler brands earned a total of four top picks. Mercedes-Benz boasts just one top pick.

Norwegian electric vehicle maker Think Global AS has narrowed its search for a site for a U.S. factory and small technical center to Indiana, Michigan and Oregon, according to several news reports.

Think said in March it wants to make 2,500 City electric minicars in the U.S. next year for fleets. It aims to launch production of retail vehicles in 2011 for sale in 2012. The company, which was owned by Ford Motor Co. from 1999 to 2003, plans to eventually increase output to 60,000 units. The company has applied for loans from the U.S. Dept. of Energy to finance construction of the factory.

Reuters quotes Charles Gassenheimer, CEO of Ener1 Inc., which owns a 31% stake in Think, as saying the company has chosen a site in Indiana and will announce details in a few weeks. But the company tells other news organizations that no final decision has been made.

Ener1’s lithium-ion battery maker EnerDel, which supplies batteries for the Think City electric minicar, makes cells and battery packs at two plants near Indianapolis. Locating Think’s car plant nearby could hold down the cost of shipping heavy battery packs.

Separately, Think named Jan Brentebraten, Ford’s European director of alternate fuel vehicle strategy, marketing and sales, as its new director of sales, marketing and service. The company also hired Helge Nerland, CFO of recycling systems maker Tomra Systems ASA, as its CFO.

Toyota Motor Corp. sold 640,000 vehicles worldwide in October, up from 609,500 a year earlier, marking its first year-over-year increase in 15 months.

Sales increased 40% in China and 15% in Japan, offsetting a 4% decline in the U.S. Demand in many countries has been helped by government incentives to encourage the purchase of fuel-efficient, low-emission vehicles.

The Obama administration wants General Motors Co. to “err on the side” of speed when it schedules its initial public stock offering, Reuters reports.

Ron Bloom, senior adviser to the White House’s auto task force, tells the news service GM could go public as early as the fourth quarter of next year if it meets its financial targets. He says the Dept. of the Treasury is eager to begin selling its 60.8% GM stake.

As for Chrysler Group LLC, in which the government owns a 9.9% stake, Bloom says the task force won’t try to rush an IPO. CEO Sergio Marchionne said earlier this month that Chrysler could go public in 2011, but Bloom says the timing will depend on the company’s turnaround progress. He says the task force is encouraged by Chrysler’s “ambitious plan.”

Prices paid by American consumers increased 0.3% from September to October, according to the U.S. Dept. of Labor.

The Consumer Price Index fell 0.2% from October 2008. The price of new cars and light vehicles increased 1.6% from September, the biggest month-over-month increase in more than 28 years. Economists attribute the rise to the expiration of the government’s “cash-for-clunkers” incentives, which temporarily reduced auto prices.

The core index, which excludes food and energy, rose 0.2%. Core prices are up 1.7% year over year. Economists say the moderate pace of inflation will allow the Federal Reserve to keep interest rates low without worries of soaring inflation.

Builders broke ground on new U.S. homes last month at a 529,000-unit annual pace, down 11% from September, says the Dept. of Commerce. The rate of housing starts was the weakest since April’s record low.

Construction of single-family homes slid 7%, but the rate remains 100,000 units higher than in January. Groundbreaking on multi-family homes plunged 35% to the lowest level since the government began tracking the data in 1959. The number of homes under construction fell to a record low 560,000 units.

Economists attribute the slump to soaring unemployment, wet weather and uncertainty about whether the federal government would let an $8,000 tax credit for first-time homebuyers expire this month. The credit has since been extended. Economists add that tight credit and high vacancy rates for apartments and townhouses could keep construction starts slow in upcoming months.

The issuance of building permits, a gauge of future construction, dropped to a 552,000-unit annual rate from 575,000 in September.

Union leaders at Volvo Cars plan to ask officials from prospective buyer Zhejiang Geely Holding Group Co. about the source of financing for the Chinese company’s bid for the Swedish brand, says Bloomberg News.

The news service quotes several union leaders who are worried that the Chinese government could be behind the bid. Privately held Geely has said only that its backers include Chinese banks.

Union leaders also say they want to know Geely’s business plan for Volvo and will seek guarantees that vehicle development and production will remain in Sweden. Last month Ford Motor Co. named Geely the preferred bidder for Volvo, but labor officials say they haven’t been privy to the negotiations.

BMW AG has been selected as the official automotive sponsor of the 2012 Olympic Games in London, according to the event’s organizing committee.

Under a deal worth an estimated $67 million, BMW will supply 4,000 vehicles. Its British Mini cars will transport athletes and officials during the games. VIPs will be ferried in BMW sedans.

BMW also may provide motorbikes, motorcycles and some electric vehicles for the event. The deal does not include BMW’s other British brand, Rolls-Royce. The company reportedly won out over Ford and Nissan for the sponsorship.