Yes it could, but why would I bother when I can get a $130 7" Android Tablet that's 4 times more powerful then a RasPi and already has GPS, BT, Touch input display, storage, etc?
I think if you want to utilise the existing pop up display, a RasPi Carputer would be good, if you want a intergrated look and more flexibility. Other wise a cheap Android Tablet can do it all for cheaper and safer too...