Porsche wants a smaller Panamera, will build the Pajun

No question this strategy will add sales in intermediate term but like fast food chains, once you saturate the market with outlets/models where do you go from there ? The answer is further down market further diluting your brand and lowering profit margins. Its the last CEO in one day who will pay for the actions of his forebearers who will be living fat and easy in retirement.

Saturated? You must be joking. Porsche has saturated the mid/high-priced sports car market what with the endless 911 variants and the Boxster/Cayman, but two sedans of different sizes are hardly too much. If anything, Porsche sold out with the Cayenne, which I despise as a betrayal of Porsche's values. But since Panameras aren't unnecessarily jacked-up, they can and do handle well enough to be worthy of the badge. Same goes for the Pajun, which will be even closer to being a sports car (smaller equals lighter).

I have to agree that this does not have to result in dilution of the brand as long as their only sedan offerings are the equivalent of the M, AMG, and RS models.

This is without question going to make Porsche ludicrous amounts of money, for two reasons: A) Porsche could use a 3-series fighter. If it turns out to be just a Panamera with a chopped wheelbase, it will be sporty and all-around excellent like its larger sibling. I can't wait for the Turbo model that I hope gets made (or whatever the fastest version is). B) those who want the badge for cheap will gobble them up like there's no tomorrow.

I've been predicting this car from Porsche for years.This will be a 5 series competator. However I am now predicting that Porsche will go smaller in the future and make a true 3 series sedan. My reasoning is that it helps them with increased sales and competes with Mercedes BMW and Audi. It will offer more performance but at a higher price. Perhaps its name will be Pigeon instead of Pajun. My prediction it will be introduced in 2016.Also it helps the corporate fuel economy standards. In the event that things never get settled with VAG in regard to integration this will become important.Then look for a front engined smaller Coupe with a V6. Porsche's going to milk for all it's worth if they can ech out additional sales. Just wait and see.

I'm curious as to how this design will translate on a smaller vehicle. It will be ugly, but a lot prettier than a BMW 5 GT.

Well It of course will have the typical Porsche 911 corporate face. It will not have the "Humback Wale" look of the Panamera as it will be a 3 box design. It will be less ugly then the BMW 5 GT. But people will buy it because German car makers today can get away with "Ugly". I'm sure you remember the "Bangle" design language of previous 5,6,and 7 series cars. The Panamera is Porsche's second best selling vehicle after the Cayanne. So what ever is "Ugly" to enthusiasts is "Beautiful" to the average wealthy buyer.It almost like Star Treckian characters. If you ever followed Star Treck 2 of the most prominant but ugly species were the Ferengi and the Cardasians. They ,of course, thought that Humans were hideous.Beauty is in the eye of the beholder.