BMW Mini has just announced that it will be using new technology to fully integrate its in-car entertainment systems with iPhones and iPods.

Apple’s new iPod Out feature allows your iPhone or iPod to integrate with an outside system, such as that in your BMW or Mini. The idea is that it’ll be just like using your iPod, but on the console screen inside the car.

Drivers of future BMWs and Minis will be able to browse their music using the classic iPod interface, as well as see artist info and album art.

You’ll also be able to use iPod Out for custom playlists and the Genius system, which automatically creates ’smart playlists’.

To use iPod Out in your Mini you’ll need an iPhone or iPod that runs Apple’s iOS 4.

BMW’s Mini Connected project aims to improve software and entertainment options without increasing the risks of driver distraction.