Apple and Volkswagen working on iCar?

Step right up, step right up and get yer crazy Apple rumors! As you likely know, Apple is all set to announce something next Wednesday and nothing gets those rumormongers whipped up into a frenzy like a mysterious invite from Cupertino. Yesterday we discussed some of the more credible rumors: touchscreen iPods running OS X, fat iPod Nanos and an iTunes/Beatles deal. Now we can add yet another credible-sounding rumor to the pile: a PRODUCT (RED) iPod Shuffle. You've probably seen Apple's special-edition PRODUCT (RED) iPod Nano--for every unit sold, Apple donates $10 to "the Global Fund to fight HIV/AIDS in Africa." If AppleInsider is to be believed, we'll be seeing a similarly red Shuffle on Wednesday. Makes sense.

Credible rumors are all well and good but we all know that incredible rumors are where the fun is at. So I present to you the mother of them all: the iCar. German magazine Capital reports that Apple and Volkswagen are in preliminary talks for a product code-named the "iCar". Say what? Apparently a Volkswagen spokesperson revealed that "the two company heads held talks a few days ago in California on more heavily incorporating Apple products in Volkswagen's compact cars." True though that may be, the idea of a car developed by VW in conjunction with Apple is tantalizing, terrifying and most likely, untrue. Expect better in-dash iPod integration, if anything, to result from this partnership.

For more on the rumors:
- see this AppleInsider article on the red Shuffle
- and this MacRumors article on the iCar