Porsche '718' axed

Porsche has confirmed its plan to produce a smaller, cheaper sports car than the Boxster has been officially axed.

The company's head of research and development, Wolfgang Hatz, told Autocar the 718 project, as it's been referred to, is no longer live.

"The project is stopped," said Hatz. "We have a very good entry point to the range with the Boxster, and we see no reason to go below that.

"Porsche should remain exclusive and you cannot chase volume when you are such a brand. The Boxster is our perfect entry point — we have already set the right entry level.”

Rumours of an all-new entry-level Porsche sports car priced well under $100,000 surfaced as early as 2009 — not long after Volkswagen revealed its BlueSport roadster concept but well before it purchased the Zuffenhausen car-maker. Audi's version of the mid-engined drop-top was to have been called the R4, or so the story went.

As recently as 2011 Porsche chief Matthias Müller said the modern-day 550 Spyder would be a key part of Porsche strategy to reach 200,000 sales per annum, with power provided by the company's new range of flat-four engines.

Now it seems the 718 project has been shelved — along with plans to produce a smaller sedan dubbed 'Pajun' and positioned below the Panamera to target the BMW 5 Series – for good reason.

First, Porsche is already well on its way to achieving its goal of 200,000 annual sales without either model. Thanks mostly to the new Macan mid-size SUV, it has sold more than 170,000 so far this year — up 15 per cent on the same period in 2013.

Second, Porsche has confirmed its all-new four-cylinder boxer engine – displacing just 2.0 litres but turbocharged to deliver up to 300kW – will debut in the facelifted Boxster and Cayman two-doors next year.

Third, Volkswagen has placed a freeze on the development of additional models across the whole group – including all 12 of its brands — as part of a restructure to reduce costs and delays in bringing its new MQB platform-based models to market.

This is despite being on target to sell 10 million vehicles this year and lifting its third-quarter profits by 16 per cent and earnings by four per cent – with Porsche and Audi alone generating no less than two-thirds of the latter.