New Panamera Sedan Will Test Porsche's Image

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The main criticism of the Panamera is its rear design. The roof line is somewhat bulbous, done so as to seat two adults comfortably in the back along with luggage in the trunk. Porsche executives believed it was crucial to make the car comfortable and practical, as well as fast and nimble.

Corporate VW Under the Skin

But Peter Delorenzo, editor of the AutoExtremist blog, has compared the car to the AMC Pacer hatchback of the 1970s. And Delorenzo is skeptical that Volkswagen will be a good caretaker of the brand, despite the fact the companies have long worked together on vehicles. "After Porsche is absorbed into VW, watch for an entry-level Porsche in the $35,000 range, and then watch for creeping commonality as Porsches become more corporate VW under the skin," wrote the critic recently.

Porsche needs the car to win over buyers, if not critics. Porsche's sales were down 50% in July from a year ago, as the recession keeps many buyers on the sidelines. At the Concours d'Elégance at Pebble Beach, Calif., this month, Porsche had a helicopter on hand to zoom potential buyers from the links at the famed golf club to another luxury-laden golf club nearby, or to the Laguna Seca race track to drive the car.

Porsches are not known for their fuel economy, but Porsche installed a stop-start system that shuts down the Panamera's engine at stoplights and then kicks on again when the driver touches the gas pedal. It is a fuel saving of only a few miles per gallon (government fuel-economy ratings for the Panamera aren't out yet). Porsche has also said it is developing a Toyota (TM) Prius-like hybrid system for a later date, though a hybrid Panamera won't get nearly the Prius' fuel economy.

It is doubtful that Volkswagen would have approved the Panamera had it owned Porsche four or five years ago. It already markets cars through Bentley and Audi that will compete against the Panamera. But VW is fully vested in the car and will supply its body shell, while Porsche handles the engine and assembly at the same factory that builds the Cayenne. Porsche plans to build about 20,000 Panameras a year to sell worldwide.

Massive Horsepower

Whatever people may think of its looks, the Panamera does have Porsche power. There's a 32-valve, DOHC 4,806cc V8 engine under the hood. It's rated at 393 horsepower at 6,500 rpm and makes 369 pound-feet of torque from 3,500 rpm to 5,000 rpm. Twin turbochargers pump the output of the Turbo model's V8 to 493 hp. That comes with a seven-speed, dual-clutch PDK automated manual transmission. Porsche says the Panamera S should get to 60 mph from a standstill in a bit less than 4.0 seconds. Unfortunately, in a very un-Porsche-like move, no manual transmission will be available.

Pricing starts at $89,800 for the S model, rising to $93,800 for the 4S and $132,600 for the Turbo. Prices of the various options will be set sometime before the car's official introduction on Oct. 17. But the 2009 Cayenne Turbo lists carbon-ceramic brakes at $8,840 and PDCC active stabilizer bars at $3,510.

That's a stiff price to pay for any sedan. Porsche—and now VW—have to hope there are enough well-heeled buyers out there with another spot to fill in their garage, next to the sports car and SUV.

Kiley is a senior correspondent in BusinessWeek's Detroit bureau.

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