Porsche may be adding a small sedan to its line-up. The German car magazine Auto Bild has just reported that Porsche has plans to introduce a smaller version of its Porsche Panamera (shown above) by 2017 or sooner. The magazine said the sedan was currently in development under the code name Pajun and was being designed as a competitor to the Mercedes-Benz E-Class. The report said the car would be offered with three new six-cylinder gasoline engines, ranging from 320 to 520 hp, as well as a new diesel.

Porsche said that no decisions had been made on adding another model to its line-up. If it adds the car, it will be the sixth model in its stable joining the 911, Boxster/Cayman, Cayenne/Cayenne Hybrid, Panamera/Panamera Hybrid and Macan, a compact SUV that enters production next year.