Porsche has confirmed this week that its upcoming compact SUV, known as the Cajun, will be produced at its Leipzig plant in Germany.
The brand's supervisory board also confirmed that a new facilitity will be built at Leipzig to accommodate the new line. It will be built alongside the large Cayenne SUV and the Panamera sports saloon.
Porsche chief Matthias Mueller said the announcement was "proof of confidence in the capacities of our workers in Leipzig, as well as a contribution to the region's economic development."
Aimed at younger buyers eager to have a Porsche badge in their garage, the Cajun is expected to cost significantly less than the Cayenne - the brand's best-seling model.
Little has been revealed about the Cajun's technical details, although the Audi Q5 offers engines ranging from a 2.0 litre TDI to a 3.2 litre FSI petrol engine developing 200kW and 330Nm of torque.
The Cajun will be the fifth model in the Porsche line-up, and its introduction comes as part of a push from within the Volkswagen Group to make Porsche a bigger contributor to the organisation's plan for sales dominance.
Volkswagen design boss Walter de Silva - responsible for the Amarok's styling - confirmed last year that the Cajun will be the first new Porsche to be developed under his guidance, with styling for the next-generation 911 and Boxster already locked in.
The Leipzig facility is expected to be ready for Cajun production by 2013, ahead of its early 2014 debut.
Pictured: 2011 Porsche Cayenne.