Oh, how the Apple faithful love a good rumor. Car folks are not so different. Some of us at Autoblog live in both camps, so imagine our joy when our two favorite rumor mills got together to whisper about a possible tie-up between Apple and Mercedes.

Foursprung is where we first saw the rumor that Apple is working with the Germans to develop an in-car navigation system based on Google maps. Despite Apple's penchant for super-secrecy, so the rumor goes, it can't plug all the German-speaking leaks. Focus magazine, a German publication, first broke the story, and says Apple plans not only GPS for Mercedes, but also a sound system. Supposedly the deal would be exclusive to Mercedes for the first six months of 2009, at which time the technology would be offered to other manufacturers.

Knowing Apple CEO Steve Jobs' preference for Mercedes, and Apple's new push into consumer electronics, a GPS system is at least somewhat believable. Add the audio system element, and we got to thinking. What if Apple wasn't working on two projects with Mercedes, but instead just one? It seems plausible that Apple's next step after in-car iPod integration would be in-car iPhone integration. Music, movies, Internet and GPS all from one pocket-sized gadget on your dashboard? Now that sounds like Apple. Unfortunately, there has been much gnashing of teeth over the fact the iPhone does not include GPS. But could it by 2009? Steve only knows.

Can we hope Apple and BMW are working on a new iDrive? Hey, the name's already there.

[Sources: Focus, FourSprung]