The meeting between Apple Head Steve Jobs and Volkswagen Chief Executive Martin Winterkorn has aroused various speculations that an iCar is probably on the way. But of course no one really knows what these two heads have discussed but still rumors of the iCar circulated on the net. As a matter of fact when you search VW+iCar on the google search you will get at least 1 million plus entries which simply shows the level of interest it has gotten.

iSuppli has recently reported that if in case Apple and Europe’s largest automaker, Volkswagen really decide to produce an iPod-capable car or the iCar they will have to face serious challenges. But despite such, the move into cars present lots of opportunities for the Apple to further expand its iPod domain. On the part of Volkswagen it would benefit from the strong sales of such vehicle.

iSuppli further stated that the total automotive infotainment market is projected to be worth US$50 billion by 2012 that is according to analyst that says further that the vehicle production is growing at a steady 3 percent rate and will grow faster at a CAGR or Compound Annual Growth Rate of 8 percent between 2006 to 2013.

Richard Robinson, principal analyst, automotive electronics, for iSuppli explained that the difference between the two firm’s corporate cultures could present a serious problem that is despite the old cliché that says “opposites attract”. The cultural difference between Apple and Volkswagen may actually prove to be too wide to bridge.

Warranty is another problem that is seen since Apple has to support the vehicle throughout its usable life.

Robinson further stated as quoted by iSuppli: "Apple is a highly innovative and dynamic consumer electronics company that generates significant profits from living off its wits and supplying niche markets with the next big thing in music players, mobile phones and personal computers. VW, on the other hand, is from an entirely different tradition: the more conservative world of automotive, with its solid four-to five-year development cycles, tight margins and production-standard compliance requirements that would bring even the most enthusiastic designer from Cupertino to his knees."

Anyway, there are still no official statements coming from both Apple and Volkswagen so until that time comes the iCar would remain as a rumor.