Porsche says that the Panamera will go on sale in 2009 and it will be powered by various engines, while the car will be rear-wheel-driven.
The Panamera name is derived from the legendary Carrera Panamericana long-distance race.
Porsche's total investment in the new model series, including development, will be more than €1bn and will come entirely from the Company's own funds. Expected sales are at least 20 000 units a year.
Production of the Panamera is to be in Leipzig, where Porsche already builds the Cayenne Sports Utility and the Carrera GT High-Performance Sports Car.