According to German magazine, Capital, the next product to be unveiled by Apple could be an iCar. Quoting a Volkswagen official, the magazine reported that Apple CEO, Steve Jobs, and Volkswagen CEO, Martin Winterkorn, have met in California.

The source said that the two companies are collaborating on a compact car, that would feature products by Apple, but the project is still in the early stages.

Volkswagen is already working with Google and graphics chipmaker, nVidia, on an in-car navigation map system and display that is 3-dimensional thanks to which driver and Passenger will be able to instinctively recognize where they are in relation to the surrounding topography, especially in urban areas that are depicted with depth and accurate size relationships between buildings and roads. Last years, Volkswagen presented a prototype of its navigation system.

Apple has worked also with various car-makers, in order to ensure seamless iPod integration. Last year, the Cupertino company announced that they will start collaborating with Ford Motor Company, General Motors and Mazda.

Germany's BMW AG was the first automaker two years ago to incorporate iPods directly into its car audio systems, allowing users to plug the music player into an adapter that goes into the glovebox and access the iPod's music library through the car's standard controls.

So, maybe the meeting between Jobs and Winterkorn  was about iPods, but maybe they are preparing something bigger.