Mickey Drexler told the audience at Fast Company's Innovation Uncensored conference that Apple's CEO and co-founder dreamed of designing a fully-fledged "iCar".
He said: "Look at the car industry, it's a tragedy in America. Who's designing the cars? Steve's dream before he died was to design an iCar and I think it would've been probably 50% of the market. He never did design it."
Drexler also fuelled rumours that Apple is planning to break into the television hardware market, saying that the firm will be focusing on the living room "at some point".
Jobs passed away in October 2011 following a lengthy battle with pancreatic cancer. A biopic about the tech mastermind's life is currently in the works at Sony Pictures with Ashton Kutcher in the lead role.
The concept of the iCar is not thought to have been taken up by Jobs's successor Tim Cook.