#BabyCayenne

Porsche has confirmed the Cajun compact crossover will head into production, hitting the market in 2013. The news comes as part of an announcement by the German automaker that it has selected its Leipzig plant to assemble the new vehicle alongside the Cayenne and Panamera.

In a recent interview with Germany’s Der Spiegel magazine, Volkswagen CEO Martin Winterkorn not only gave credibility to reports that Porsche is planning a new smaller SUV model; he even hinted at the name. Commenting that the new model would be used to increase Porsche’s sales numbers, Winterkorn used the name Cajun to describe the baby Cayenne.

Porsche will again move forward with plans to build a new entry-level sports car, as well as a smaller SUV, while expanding its hybrid technology in the years to come. As its own entity, proposals for the baby-Boxster and smaller Cayenne were both axed, but under the new Volkswagen management the cases have been reexamined with the small roadster being given the green light while a compact SUV is still under consideration reports Automotive News.

Porsche will not bring a smaller SUV to market fearing it may cannibalize sales of the popular Cayenne. According to a report by AutoCar, Porsche officials have studied the sales numbers for Audi’s Q5 and Q7 and suggest the new Q5 may be stealing away customers from the larger, more expensive SUV. The Cayenne is also a very profitable SUV, representing 50 percent of Porsche’s profits.

Porsche has officially confirmed that it is looking at bringing a baby Boxster model to market. Rumored to have been in the works for some time, VW Chairman Dr. Martin Winterkorn told the U.K.’s Autocar that such a sports car is under considreration.

Porsche’s new CEO, Dr. Martin Winterkorn, has declared that he expects Porsche to double its annual sales in the next four years.