Apple co-founder and chief executive Steve Jobs has reportedly met with Martin Winterkorn, chief executive at Volkswagen AG, to discuss a possible collaboration.
A report in Associated Press suggests that the two chiefs have set up meetings to outline a car that would integrate Apple's technology.
Both companies have a history of working to integrate computers and media players into cars.
Aside from partnering with Apple to support the iPod, Volkswagen has publicly shown an interest in embedding ultra-mobile PCs inside its vehicles.
The car maker has also been working with Google to create an in-car navigation system based on Google Maps.
Apple has been working since 2004 to integrate iPod connectors into vehicles from BMW, Audi, Ford, Mazda and Ferrari.
Although embedded in-car systems would form a new market for Apple, the company has shown a willingness to expand into uncharted territory over the past year.
Apple unveiled its first set-top box, the AppleTV, in September, and turned the mobile phone world upside earlier this year with th e iPhone.






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