It has been reported that Volkswagen and Apple are currently discussing the idea of producing a car together. Apple CEO Steve Jobs and Volkswagen CEO Martin Winterkorn met earlier this month in California to discuss the possible joint-venture. No details about the car have been released, but it has already been dubbed the "iCar."

According to Germany's Capital magazine, research has shown that a compact car upgraded with Apple products would be of great interest to young target groups.

VW and Apple have worked together before. In 2003, the two companies joined forces in the "Pods Unite" promotion, in which VW gave a complimentary Apple iPod to anyone who purchased a Beetle.

Jaguar consults with Apple

Meanwhile, Jaguar has apparently worked with Apple on in-car computer interfaces. Speaking with the U.K.'s Car magazine about the rotary JaguarDrive gear selector in the new XF sedan, designer Ian Callum said, "We have been working with Apple on control interfaces."

Mercedes rumors

In June, rumors emerged that Apple was developing a navigation system for Mercedes-Benz. The technology will debut for the 2009 model year, German magazine Focus said.