FRANKFURT -- To keep pace with its planned model expansion and sales targets, Porsche AG will increase its headcount by at least 1,000 employees -- an increase of about 8 percent -- and spend at least 1 billion euros, or about $1.35 billion, in facilities, product planning and engineering.
The spending will take place over the next five years, Volkswagen Group sources said.
Of the total spending, at least half will be on factory improvements, with the rest dedicated to product development.
A Porsche spokesman refused to comment on the planned spending.
More than 500 jobs will be added to enable production of Porsche's fifth model -- a compact SUV known as the Cajun -- which will come to market in 2013 in Europe. The Cajun, which is smaller than the Cayenne SUV, is expected to be launched in North America about six months later.
Also, 500 engineers will be added to allow for a product expansion and Porsche's increasing responsibilities within VW Group.
At the Detroit auto show in January, Porsche executives said they are considering adding three products in the next five years and plan to double sales to 200,000 units a year by 2018. Porsche sold about 97,000 vehicles globally last year.
In November 2010, Porsche employed 13,043 people worldwide.