In Germany, Mercedes is now offering direct iPhone integration in some of its vehicles via its optional convenience telephony feature (Order Code 386). The iPhone Cradle lets owners switch between telephone and audio functions, and also lets them control the iPhone via the car's multifunction steering wheel. The vehicle's display shows phone status, music functions, and track info such as the title and artist name.

The company said in a statement that the cradle connects to the car's audio system either via the optionally available Media Interface, or the company's aftermarket iPod Interface Kit. The new iPhone Cradle works with Mercedes-Benz C-Class, E‑Class, CLK-Class, CLS-Class, S-Class, CL-Class, SL-Class, M-Class and R-Class vehicles. The company said that this will be a great option for the 100,000 or so iPhone users that are currently in Germany. That's fine, but I can think of a much larger market where they'd make lots more money...