The new compact sport utility vehicle (SUV) from Porsche, the Cajun, is expected to be rolled out later next year or early 2013.
The car will go into production at the auto maker's Leipzig plant in the Saxony region of Germany, alongside existing models, the Cayenne and Panamera.
Around 1,000 new jobs will be created at the factory to accommodate its expansion as it gears up to step up production, the German company informed.
Porsche boss Matthias Müller 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."
The Cajun is being promoted as a "desirable entry-level model" with "refined handling".
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