Word out of the Associated Press indicates that VW and Apple are possibly maybe might be working on an iCar. What does this mean for the automotive world? Will Apple be able to break into a new market again, as they did with the iPhone and iPod? And is VW really the obvious choice for a co-partner?

Read the full release below:

Volkswagen and U.S. computer company Apple are in discussions about a possible ‘iCar’ project

U.S. computer company Apple Inc. and German automaker Volkswagen AG are in discussions about the possibility of building an “iCar” that would feature products developed by Apple.
Steve Jobs, Apple’s chief executive, and Martin Winterkorn, Volkswagen’s chief, met last week in California and plan to meet for further discussions, said Hans-Gerd Bode, a VW spokesman.
He said there are “scores of ideas,” but few concrete plans at this point.
Market experts estimate that a compact car upgraded with Apple products would be quite attractive to young target groups, according to Capital, the German financial magazine. Apple already works with VW and other automakers to offer an integrated in-car hookup for its iPod music players.
Electronics, ranging from satellite navigation machines to cup warmers, increasingly are a selling point for automakers. This fall, Ford will debut an in-car communication and entertainment system developed with Microsoft Corporation that will cost US$395 as an optional feature. The system, called Sync, allows drivers, using either voice recognition or steering wheel controls, to listen to their digital music players and have text messages on their cell phones read aloud. (Associated Press)