Allegedly the German automaker Volkswagen and American computer company Apple Inc. are working on a common project: “iCar,” the German-language magazine Capital reports.

Experts say a car with Apple products would garner much interest, especially among younger buyers, Sueddeutsche.de reports.

A Volkswagen spokesperson confirmed that VW chief Martin Winterkorn met a few days ago with Apple Boss Steve job in California for discussions relating to the project. The discussions are said to be in the early stages.

According to the report, there are to be models for Western Europe along with sales in the growing markets of China, India and Russia. In developing countries this “iCar” will be offered for 6500 euro, Sueddeutsche.de reports.

Full article (German to English via Google Translation) here.

Capital’s article (German to English via Google Translation) is here.

MacDailyNews Take: Best guess, peering through cloudy, ham-handed translation: iPod/iPhone vehicle integration of some sort.