Yesterday I wrote that Apple was having some legal woes attached to its i-Phone. It seems users who travel overseas may be hit with whopping long distance charges.

If the day's bad press bothered Apple CEO Steve Jobs, he's certainly not showing it. In fact, he followed up on the lawsuit challenge with big news on the Apple technology front.

According to the Associated Press, U.S. Apple and German automaker
Volkswagen AG are "discussing the possibility of building an "iCar" which would feature products by the producer of the ubiquitous iPod personal music player."

The wire service reports that Jobs and Volkswagen's chief Martin Winterkorn met several days ago in California, and plan to meet for further discussions, quoting Hans-Gerd Bode, a spokesman for VW.
There are "scores of ideas," but few concrete plans at this point, Bode said.

That sound you hear from Cupertino to Madison Avenue is marketing mavens licking their lips over a new VW stocked with goodies from the Apple franchise. The automaker already enjoys a solid following from the 20- and 30-something demographic. Imagine the throngs of checkbook-waving hipsters lining up to drive a new VW with an i-Phone and an Apple GPS system gleaming back at their fresh, shiny faces from the dashboard.

The idea that Apple would hook up with VW isn't entirely unexpected. Accroding to the AP, Apple already works with VW and other automakers to offer an integrated in-car hookup for iPods.

Right now, it seems like automakers need technology companies more than technology companies need automakers. "Electronics, ranging from satellite navigation machines to cup warmers, are increasingly a selling point for automakers," says the AP. "Ford Motor Co., for instance, will debut this fall an in-car communication and entertainment system developed with Microsoft Corp. that will cost $395 as an option.

So will Apple really put the "Bug" back in VW? It appears likely.

Seems like a pretty good idea to me as long as they don't follow on with the look of the rest of their range too much otherwise it will just end up looking gay. Who knows though this could be the new beatle for years to come.