The idea is that the Porsche badged "budget" model would feature the same 2.0-litre, turbocharged, four-cylinder engine as found in the current Audi TTS and would be based on either the current Boxster, or possibly even the Volkswagen BlueSport Concept.
Though using a "lesser" engine might seem like a step in the wrong direction for the team from Stuttgart, the Boxster would actually benefit from the transplant with an increase in power of some 7.5 kilowatts over the current engine. It would also see a price decrease of some A$16,000.
Discussions are said to be ongoing between Porsche and Audi regarding the use of this engine in the Boxster though to protect the marque, it's possible a new, entry-level model could be created based on Volkswagen's BlueSport roadster.
Although nothing is set in concrete we do know Porsche has been left with quite a bit of debt following its attempt to purchase VW and such a model would certainly fill a hole.