Porsche has targeted its annual output to reach 100,000 cars.

The German luxury car maker plans to invest almost €1bn (£0.66bn) to bring the latest generation of its 911 sports car to market.

Porsche's plans include an upgrade of its main Zuffenhausen manufacturing facility to boost productivity and streamline the assembly process, Wendelin Wiedeking, chief executive, said yesterday at a launch of the new car.

The improvements, together with its Leipzig plant reaching full capacity in building the Cayenne sports-utility vehicle, and the expected unveiling of an all-new model of the eight-year-old Boxster two-seater at the Paris motor show in September, could see Porsche crossing the 100,000 threshold within the next three years.

Indicating that Porsche's profits for the current year would break last year's record €933m (£623m) by a significant margin, Dr Wiedeking said the company's current high level of cash reserves and sustained record earnings meant that "we have sufficient resources to have all options open to us" in terms of new models and other strategic developments.