BMW denied a report by Auto Motor und Sport saying that it is talking with technology giant Apple but those discussions haven't involved developing or building a car.

The German magazine said in the March 4 edition that the two companies were talking about a partnership to create a passenger vehicle.

Apple is supposedly impressed with BMW's carbon-fiber electric vehicles, according to the magazine, citing "high ranking BMW manager.

In its report, Auto Motor und Sport reported that Apple cars could be sold in Apple stores and serviced at BMW dealerships.

"We are in regular talks with companies from the IT and telecommunications sector, including Apple, concerning topics like connected vehicles," said BMW spokesman to Reuters. "Developing or building a car is not a topic of these discussions."

Among a number of different issues that need to be resolved is whether or not BM would let Apple develop an operating system for its i3 vehicle. This would be a big step allowing BMW to reveal details of its own vehicle software to the tech company.

If its OS is integrated into the i3 it would allow all iPhones, iPads, Macs, and Apple Watches communicate and exchange data. It would also let them integrate with the vehicle's movement data and fuel consumption, the magazine reported.

Bloomberg reported last month that Apple is supposedly working on an electric vehicle to start production around 2020, but it still won't confirm any plans officially. They must be doing something since they're already being sued by battery maker A123 for poaching employees.

Apple's team of around 200 people are busy working on the "Titan" project, which could be dropped if executives aren't happy with its progress.

The Cupertino-based company posted a record profit of $18 billion during the last quarter and has $178 billion in cash.

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