iCar - A Beetle in Apple's Bonnet?

Apple CEO Steve Jobs and Martin Winterkorn, chairman at Volkswagen, met in California recently, according to an Associated Press report. They plan to meet for further discussions, a VW spokesperson told the AP.

The logical conclusion is that the two companies could be collaborating on an iCar replete with Apple technologies.

Neither Apple nor Volkswagen could be reached for comment.

Maybe, Maybe Not

Of course, Apple has already been collaborating with Volkswagen -- among other auto manufacturers -- on iPod integration in cars, so only time will tell whether these recent discussions were actually about an iCar.

"Is it likely? Sure, but I wouldn't start counting my iCars until they're sitting on the showroom floor," Bryan Chaffin, editor in chief of The Mac Observer, told MacNewsWorld.

"My gut feeling is that the two company heads probably have met and discussed this sort of thing, but that doesn't necessarily mean an iCar is on the way," Chaffin added. "It could, but it might not."

Complementary Brands?

The two brands could be compatible. Ever since VW's resurgence with the new Beetle, there have been many comparisons made between that vehicle and the iMac, Chaffin added. "I think in some ways those two products did touch a similar nerve," he said. "A particular demographic might think nice, happy thoughts about such a vehicle."

Apple hasn't spent much time developing car-related technologies the way Microsoft (Nasdaq: MSFT) has, Chaffin noted -- it doesn't have any code running automobile subsystems, for example, whereas Microsoft does -- so "I personally would love to see Apple actually do some of these things," he said. "I think it's a fantastic opportunity to work on interface issues."

Indeed, "I wouldn't put it past Apple," particularly because of Microsoft's long involvement already in the automotive arena, noted Mark Fitzgerald, automotive analyst at Strategy Analytics.

Human-Machine Interfaces

One of the big challenges in the automotive area right now is to develop human-machine interfaces that can safely link the driver to the vehicle, whether to type an address into a navigation system or to dial and talk on the phone, Fitzgerald told MacNewsWorld.

In-car voice recognition , which would probably be the ideal solution, has made some inroads, but "vehicles are noisy environments, with background noise from the engine, the road, the radio, the fan and conversation," he explained.

"That's a huge challenge for the auto industry, and Apple is absolutely the best at building human-machine interfaces for portable devices," he explained. "That thought process could be brought over to vehicle side as well."

Consumer Demand

While there would be considerable demand for better human-machine interfaces in cars as well as for audio and cellular phone service, there would be less demand for Web browsing, full e-mail or other features of the mobile office, Fitzgerald noted. "There would be a small, select market, but it wouldn't be for the average person," he explained.

Most cars already have at least an audio input jack for connecting iPods, he said, but "the next step will be controlling them through the vehicle, like from buttons on the steering wheel," he said.

Nevertheless, in general, with generation lead times much longer than those for personal technology, "cars will always be behind the tech trends," Fitzgerald pointed out.

'Highly Unlikely'

The rumors about an iCar may be captivating imaginations, but not everyone is convinced.

"I've had a good chuckle about this," Michael Ippoliti, research director for telematics and automotive at ABI Research, told MacNewsWorld. "I think it's highly unlikely."

Apple is a company that "everyone wants to emulate," Ippoliti noted. "They have the cachet and the coolness, they're delivering mass-market products that make bags of money, and they have enviable control over brand and pricing. Everyone wants a piece of that, particularly the car companies, which are all struggling a bit these days."

Just Another Rumor?

Every car company imagines that it is "the Apple of the car business," Ippoliti said, but "in reality, I don't think Steve Jobs sees himself like any of the car companies, except maybe BMW."

Apple likely does want to be involved with automobiles, but all rumors need to be taken with a grain of salt, Ippoliti cautioned.

"Three to four months ago there was a rumor that Apple folks were hanging around Mercedes, leading to speculation that Apple would be doing the entire entertainment system for the next Mercedes car," he said.

"This is just the same, but neither one is going to happen," Ippoliti concluded. "It's fun to think about, and I'm all in favor of the car companies learning from Apple, but there is not going to be an iCar."