Volkswagen AG's head of production predicts that Porsche AG's next model line will be produced at the sports car maker's factory in eastern Germany.
"There hasn't been a final decision, but I see the Cajun at Porsche's Leipzig plant," Michael Macht, who is the former CEO at Porsche, told Automotive News Europe sister publication Automobilwoche.
Starting in 2013, Porsche will produce a new compact SUV, code-named Cajun, which is expected to use key components from the Audi Q5.
In December, the Leipziger Volkszeitung newspaper reported that Porsche had drawn up plans to expand its Leipzig plant specifically for the Cajun and had held discussions with the city's authorities.
Porsche's supervisory board will make a decision on the Cajun's production location in mid-March.
VW Group, which owns 49.9 percent of Porsche, made Macht production boss for the company's 10 brands, which includes Porsche, last October.
Macht was succeeded as Porsche CEO by Matthias Mueller, who told Automotive News Europe earlier this month that Leipzig and Audi's factory in Ingolstadt are in the running to get the Cajun.
Without being more specific, Mueller said there would be "considerable one-off costs" if the SUV were build in Ingolstadt.
Meanwhile, adding the SUV to Leipzig would mean adding a body shop and paint shop to the plant, which Porsche insides say will cost 500 million euros to 700 million euros.
"If the investment amounts for Leipzig and Ingolstadt are almost the same, we will certainly opt for Leipzig and develop our own location," Mueller said.
Macht told Automobilwoche that the VW Group's available production capacity is exhausted so it needs to invest to add body construction, paint facilities and assembly.
"For this reason, Leipzig has a very good chance to become a fully integrated auto factory, in my view," he said.