Plug-in vehicles probably won’t begin to significantly reduce U.S. oil consumption and greenhouse gas emissions until at least 2030 because the cost of lithium-ion batteries will limit vehicle sales, according to a new report from the National Research Council.

The analysis, which was prepared for the Dept. of Energy, estimates that as plug-in vehicles arrive next year, they could cost $18,000 more to produce than gasoline-powered cars. The NRC expects the cost of such batteries to decline by only half over the next 20 years-a much less optimistic view than those of makers of plug-in vehicles.

The study says subsidies of tens to hundreds of billions of dollars will be needed over the next several decades to promote sales of plug-in vehicles.

The U.S. Supreme Court has dismissed a challenge by a group of Indiana pension funds to the way a federal bankruptcy court handled Chrysler Group LLC’s reorganization in Chapter 11.

The high court says appeal is moot because the sale has occurred. In June, the Supreme Court rejected an emergency appeal by the Indiana funds to block the sale of Chrysler’s best assets to a new entity. The company emerged from bankruptcy a day later.

The latest challenge sought to force a union-run retiree trust to return a $4.6 billion note and a 55% stake in the new Chrysler that it received during reorganization. The Indiana funds, which owned $17 billion of Chrysler secured loans, lost $4.8 million on the investment. They contend the Obama administration unfairly favored the trust’s unsecured claims over their own.

General Motors Co.’s Saab Automobile unit confirms it has closed a deal to sell some of its assets to Beijing Automotive Industry Holdings Ltd.

Saab says the sale will raise an undisclosed amount of capital to help the company develop future vehicles under new ownership. Bloomberg News cites an unidentified source who says Saab will receive at least $281 million. The Swedish company says it continues to negotiate with potential buyers of its remaining assets and operations.

Saab has sold BAIC the tooling and all rights to the outgoing 9-5 midsize sedan, some unspecified technology from the current 9-3 compact sedan and the technology and tooling for transmissions and turbocharged engines. The deal does not include rights to the Saab brand name.

State-owned BAIC plans to ship the 9-5 tooling to China in a few weeks when production of the current version ends in Sweden. Saab engineers will help BAIC integrate the technology into future models. The Chinese company, which operates joint ventures with Daimler AG and Hyundai Motor Co., is eager to acquire vehicle technology so it can launch vehicles under its own brand.

Previous speculation that Saab would sell assets to the Chinese company assumed the move would lead to the liquidation of the balance of Saab, including its Swedish operations. Analysts say that is still a possibility. But GM is reportedly in talks to sell the rest of Saab to Dutch sports car maker Spyker Cars NV, which endorses the asset sale.

General Motors Co. says CFO Ray Young will become head of international finance on Feb. 1, reporting to Tim Lee, president of international operations. The company adds that Young also will assume other unspecified international operating responsibilities to be clarified soon.

GM confirmed the company’s widely reported search for a new CFO for the first time last week and said it could fill the job this month. Young, who has worked for GM in Brazil, Canada and Europe, has been CFO since March 2008.

Ford Motor Co. says it will reinstate merit raises, tuition assistance and 401(k) matching contributions for its 17,000 U.S. salaried employees in the first half of next year as its business improves.

Mark Fields, head of Ford’s Americas unit, announced the changes in a memo to employees that declares, “Our plan is working.” The company surprised investors with a $1 billion profit in the third quarter, its second consecutive profitable quarter.

On Jan. 1 Ford will resume 401(k) matches, which were suspended this year, for up to 5% of base pay. Tuition aid, which was halted in 2008, will resume on March 1. Merit raises, which were dropped in 2006 when the company lost $12.6 billion, will be reinstated on April 1.

Fuji Heavy Industries Ltd., the maker of Subaru vehicles, plans to boost output at a key assembly plant in Japan and another in the U.S. to full capacity next month to keep pace with rising sales, says The Nikkei.

The newspaper, which doesn’t cite its sources, says the factories in Japan’s Gunma prefecture and Lafayette, Ind., are expected to produce a record 140,000 vehicles in the January-March period, up 70% from a year earlier. Subaru shares its Indiana plant with Toyota Motor Corp.

To increase production, the company is hiring additional employees and adding overtime and holiday work. For the fiscal year ending March 31, Fuji Heavy expects to make 550,000 units, up 10% from its previous forecast. U.S. demand increased 14% in the first 11 months of this year vs. a 23% decline in the light vehicle market.

Daimler AG expects to wrap up its prolonged quest for a partner in developing small cars and engines by the first half of next year, says Bloomberg News.

CEO Dieter Zetsche tells the news service the company will know by then whether it will form an alliance and, if so, who its partner will be. Zetsche says Daimler would like to form a partnership that encompasses its Smart minicar and Mercedes-Benz A- and B-Class subcompacts, as well as engines and other components.

Daimler has held such discussions with BMW AG and other automakers. Manager Magazin reported last month that Daimler might cooperate with Renault SA on small cars and engines. Automakers are increasingly forging such alliances to share costs. Zetsche says a cooperative venture would help Mercedes-Benz Cars reach its goal of boosting its operating margin to 10%.

Vice Chairman Bob Lutz says he’s “fine” with his new role as advisor to General Motors Co.’s new CEO, Bloomberg News reports.

CEO Ed Whitacre reassigned Lutz early this month from head of marketing and communications to an advisory job without direct reports. Lutz tells the news service his role now is riding herd on design, engineering and product development teams to ensure Whitacre’s wishes are carried out.

Lutz dismisses speculation that he’s planning to leave GM. He’s sticking with the mantra he’s used to counter repeated rounds of retirement rumors since he joined GM in 2001: He will stay as long as he’s making a contribution, being listened to and playing an important role.

Lutz said in February he would step aside as product development czar in April and retire by year-end. But when GM emerged from bankruptcy, he agreed to stay on in the marketing job.