Porsche will spend $1.7b to develop 'perfect fit' Panamera

German high-performance carmaker Porsche will spend $1.7 billion developing a four-door coupe called the Panamera.

The marque's fourth model - after the iconic 911, Boxster and Cayenne - is expected to cost between $250,000 and $300,000 when it goes on sale in 2009.

The four-seater will compete against models from Mercedes-Benz, Maserati, Aston Martin and Bentley.

Porsche said it expected annual sales of about 20,000 worldwide.

The decision to build the Panamera, successor to the now discontinued two-door 928, has taken a long time.

Analysts said the runaway success of the four-wheel-drive Cayenne convinced the Porsche board of management that demand for the Panamera would be steady enough to make production profitable.

"We, indeed, took a lot of time making the decision, but the Panamera is a perfect fit for Porsche," said company chief executive Dr Wendelin Wiedeking.

"It has all the typical DNA characteristics of a genuine sports car. In terms of performance, design, and driving dynamics, it meets Porsche's high standards in every respect.

"Through this sports coupe we are making our customers a highly attractive offer in the top-performance segment."

Wiedeking said Porsche would develop a separate platform for the Panamera and build it at its Leipzig plant using the company's own resources.

"There are no plans for a joint venture with another carmaker, but to ensure the profitability of this new model line we will co-operate more closely with selected system suppliers."

The new model is expected to borrow styling cues from the Cayenne and Carrera GT supercar, both built at Leipzig.

It is also expected to come with a choice of rear- and all-wheel-drive and V8 and V10 engines producing between 300kW (400bhp) and 450kW (600bhp).