Google VW Mashup for Nav System

Automotive News has a story today about a navigation system currently under development by VW and Google. It was demonstrated at CES, but this is certainly the first really compelling description and screen shots I've seen.

You can imagine what the system is: Google Earth, in-car. Throw in a little GPS data and you've got a pretty amazing system for navigating the roads and, naturally, finding things.

Online directories are certainly a big deal: the phone is often considered to be the device of choice for these services, but this would take it a step farther, in terms of usefulness. Plus: every time you see a Google announcement, you should think "inventory". I am convinced that this is a core question that is being asked of all their innovations: "How does this create new ad inventory for us." The opportunity for local merchants here is huge.