intomobile has this story on Apple will be designing an iCar with VW, very interesting indeed. However the story goes on to say
While this is still speculative, we could safely bet VW will be introducing vehicles with iPhone/iPod integration support.
They got that bit right, my new car, which is somewhere in a VW factory being built, has iPod support built into the glovebox. A secret lid drops down to reveal an iPod dock, the ipod then works through the car stereo controls.