Porsche has confirmed that it will invest over €500 million ($691 million) in its production facility in Leipzig, Germany, to begin production of the new Cajun small SUV. The Cajun is scheduled to start production there in late 2013, and will reportedly lead to the creation of about 1000 new jobs at the factory.

The Cajun is a smaller SUV which will be extensively based on the Audi Q5. In fact, Audi was in charge of developing both the Cajun and the next version of the larger Cayenne SUV. As such, reports suggest the "baby Cayenne" will offer both a 235-hp, turbocharged 2.0-liter inline-four and a supercharged 3.0-liter V-6 cribbed from the Audi/Volkswagen engine range. The top-spec Cajun might score a Porsche-developed, twin-turbo V-6 producing as much as 350 hp. An all-wheel-drive system based on Audi's Quattro driveline will be standard.

As the Cajun will be pitched against the new Land Rover Range Rover Evoque, we expect the Porsche to be offered in both three- and five-door configurations. It may even wear styling cues that ape the 959 rally car of yore - meaning we can likely count on a tall stance and a rounded nose. We wouldn't go so far as to suggest that Porsche turn the Cajun into a rally machine, but the visual similarities could be there.

Porsche hopes the Cajun, which will slot in below the Cayenne price-wise, will attract younger buyers to the German brand. The company says the Cajun "will inject fresh momentum alongside the new generation Cayenne" in the Porsche range.

Porsche's Leipzig factory was opened in 2002 to build the Cayenne SUV, and more recently added construction of the Panamera four-door to its resume. The factory also produced the Carrera GT supercar from 2003 to 2006.

Source: Porsche