Apple announced plans to further push iOS integration into cars at its Worldwide Developers Conference in June. Microsoft on the other hand has been working with car makers for a number of years now.
According to the paper, the aim of the deal is not to integrate Android smartphones with the car, but rather to open up cars as another platform for Android apps to be developed for.
The deal differs from Apple’s approach where the iPhone would be integral to functionality. The feature is expected to provide a way for users to integrate their iPhones’ functions and apps more tightly with their car.
Ford is also on board with Apple. However, it is managing the integration through its own platform Ford SYNC, rather than through iOS in the Car.
General Motors and Volkswagen have yet to announce their allegiance and are likely to be wooed heavily by both companies in the coming months.
The partnership is likely to be one of the major stories that breaks out of the 2014 Consumer Electronics Show.