Porsche Scraps Plan for Lower-Cost Sports Car

CEO Matthias Mueller says Porsche AG has dropped plans to develop a relatively inexpensive sports car for its lineup.

More than a year ago, Mueller floated the idea to Automotive News Europe of an entry-level sports car inspired by Porsche's 550 model of the 1950s. At the time, he said the car nicknamed the "James Dean Porsche" for its most famous owner could debut as early as 2014.

But Muller told Wirtschaftswoche in January that such a car might dilute Porsche's exclusive image. He cited the same concern to the Stuttgarter Zeitung on Saturday in confirming that Porsche has dropped the project.

He also confirms Porsche's interest in adding a small sedan to its lineup in about five years. Last week Auto Bild said Porsche would add such a car, code named Pajun, by about 2017.