German magazine Focus has a rather interesting tidbit today.

Apparently they have word that Apple is partnering with Mercedes to build an in-car navigation system. This seems a little strange at first until you realize the Google Maps integration Apple’s been developing, and the fact that they’ve never quite managed to get in-car iPod integration as elegant as it should be.

Perhaps an Apple-branded built-in headunit that combines stereo, iPod and navigation would be the logical workaround for clunky car to iPod interfaces?

After using the “elegant” BMW/Mini Apple branded iPod dock, we’re watching this one with interest.