Porsche to spend €1.1 b to upgrade German plants.

German sports carmaker Porsche will spend €1.1 billion ($1.21 billion) through 2020 to upgrade its main production and research sites for more models.

Volkswagen-owned Porsche is building a new engine plant and body shop at its core factory in Zuffenhausen, in southern Germany, which will take over production of the Cayman series from VW in 2016, adding to assembly of Porsche 911 and Boxster models.

The investment target is part of a deal announced by Porsche's management board and labour leaders, designed to safeguard jobs at Zuffenhausen, the R&D centre in Weissach and at sales operations in Ludwigsburg where about 13,000 people are employed, a labour official said.

HBL