UPDATE: Porsche To Produce New Hybrid High-Performance Car

Porsche Automobil Holding SE's (PAH3.XE) core sportscar operations on Wednesday approved a plan to add the high-performance 918 Spyder model to its line-up.

The new car will be developed at Porsche's research and development center in Weissach and produced at the German sportscar maker's main plant in Zuffenhausen, Porsche said in a statement.

Porsche caused a stir when it presented the 918 Spyder concept car at the Geneva auto show in March. Porsche executives indicated at the time that this concept car could make it into series production.

The high-performance mid-engine two-seater featured a plug-in hybrid engine with fuel consumption of three liters per 100 kilometers. Despite modest fuel consumption the 918 Spyder concept car can reach a speed of 100 kilometers/hour in just under 3.2 seconds, with a top speed of about 320 km/h, or 198 miles per hour.

The 918 will claim the top spot of Porsche's product line-up, which comprises the Boxster roadster, the Cayman, the Cayenne sport-utility-vehicle as well as the 911 model. Porsche ceased production of the GT high-performance sportscar GT in 2006 after selling around 1,200 vehicles.

Porsche is set to be integrated as the 10th brand of Volkswagen AG (VOW.XE) as of 2011 as part of a complex merger between Europe's largest automaker by sales and Porsche's holding company.

Earlier this month, Volkswagen's product strategy chief Matthias Mueller was named as new head of Porsche in a move designed to foster the integration and benefit from cost synergies. Mueller used to work at Volkswagen's Audi AG (NSU.XE) premium brand and is considered a close confidant of Volkswagen Chief Executive Martin Winterkorn.

Winterkorn aims to roughly double Porsche's annual car sales to 150,000 vehicles and expand its product line-up further.

-By Christoph Rauwald, Dow Jones Newswires; [phone]; [e-mail]