Porsche has confirmed it will produce the new Porsche Cajun compact SUV at its assembly plant in Leipzig.

Porsche Cajun CGI

The plant, located in the Saxony region of Germany, is already home to the production of the Cayenne and the Panamera.

With the Cajun expansion in the near future, Leipzig will well and truly establish itself as the home of Porsche’s less traditional vehicle designs. The Porsche 911 is produced in Stuttgart while the majority of Boxster and Cayman models are assembled in Finland.

Construction work at the 400-hectare site is scheduled to begin later this year, with the entire project set to create more than 1000 new jobs.

Porsche AG Chairman, Matthias Muller, said the decision to build the Cajun in Leipzig was the result of serious negotiations.

“During the production of the Cayenne and the Panamera, our Leipzig plant has impressively proved that it can produce premium vehicles of highest quality,” Mr Muller said.“The decision in favour of this location is proof of our trust in the skills and qualifications of our Leipzig associates, and at the same time another contribution to the economic advancement of the region.”

It is interesting to note that Porsche continues to refer to the upcoming compact SUV as the ‘Cajun’, in inverted commas, as if the name is still a tentative one. Although we would be very surprised, it seems Porsche is still not 100 percent committed to the name for the new model.

With work on the assembly line not set to commence until later in 2011, don’t expect to see the Cajun in showrooms until at least 2013.

Porsche says the production vehicle will be “efficient and agile”, and lightweight with “refined handling”.

“As a desirable entry modeI, it is expected to pave the way for new, younger customers to enter the world of Porsche,” Porsche says.

Porsche has invested around 280 million euro ($396 million) in the Leipzig plant since its inauguration in 2002, with more than 300,000 Cayenne models produced there in that time.