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."
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.