Porsche may have finally confirmed the Panamera, the coupe-like four-door sedan to tackle the likes of the Mercedes-Benz CLS, but word on the Stuttgart grapevine suggests chairman Wendelin Wiedeking is also considering a smaller SUV akin to the BMW X3.

At least one full-size design model exists at the company’s Weissach development center and is being evaluated as an addition to the Porsche range. Designed to complement
the successful Cayenne, the small Porsche SUV is in a conceptual stage of development and awaiting a production green light, according to Zuffenhausen insiders. If approved, the five-seater won’t arrive in the market before 2010.

Sources suggest Wiedeking is looking at working with Volkswagen-owned Audi on the proposed small SUV. Porsche may use the 4wd platform being developed for the upcoming Audi Q5, similar to using the Volkswagen Touareg underpinning for the Cayenne. The Q5, due out in 2007, boasts a longitudinal engine layout, with space to house a V8—two crucial elements of the new Porsche’s design.

Porsche is getting ready to roll out a new seven-speed twin-clutch Direct-Shift Gearbox for everything from the Boxster to the forthcoming GT1 supercar, according to a new report by AutoWeek. Citing patent filings, the magazine said Porsche appeared to be planning to offer the technology on all its models. Porsche has long offered customers a choice of either a standard manual gearbox, or a Tiptronic automatic transmission. The DSG system would likely replace the Tiptronic technology, and could even woo some six-speed fans due to its incredible shift speed. According to AutoWeek, Porsche had hoped to have DSG ready for the launch of the 2007 Porsche 911 Turbo, but fell short of that goal.

What kind of monster is Porsche developing? We have seen this Porsche Cayenne-based mule before, and every time we ask ourselves: What can it be? A Lamborghini SUV? A Bentley SUV?

We still don’t know for sure, but this prototype is hammering around the “Ring” with a speed that makes even Michael Schumacher jealous. It is actually one of the fastest cars around the Nürburgring, and the noise it makes is so evil, it makes the hair on your neck stand. At first, Porsche only had two of these mules, but now you can get them in almost every color. We have seen it in gold, black, blue, green and red. Also, we now know a little more than before:

First, these mules are rear-wheel-drive only.

Second, they are built as light weight cars with no power windows and central-looking, plastic windows in the rear doors and backwards.

Third, in normal cases the tires of a SUV are as wide in the front as in the back. But on this mule we can clearly see that’s not the case. The rear tires are much wider.

So, is it going to be a Cayenne RS? Is it a project that Porsche is developing for another brand? Or could it be a new front engine sports car from Porsche based on the new Panamera platform? A 2 door coupe aiming at the BMW 6-series, Maserati GranTurismo and Mercedes CL disguised under a Cayenne body just to make sure we won’t notice? Hopefully, we will get an answer to all these questions in a near future, and till then we will keep on speculating and enjoy pictures of airborne Porsches.