Porsche has secured the jobs of its 8,600-strong German workforce for another five years in return for a pledge from unions to boost productivity more than 6% annually.

The company said the agreement would allow it to increase revenue and earnings in the next few years.

In exchange for continued flexibility and productivity growth in Germany, Porsche plans to invest millions of euros in its three domestic factories, Stuttgart, Weissach and Ludwigsburg.

Porsche's board is also meeting next week to approve a small version of the Cayenne as the brand’s fifth model line.

Production of the Boxster cabrio currently built at Finland's Valmet Automotive will be moved permanently to Stuttgart from next month, filling unused capacity in the plant to the end of 2015.

Early next year, Valmet will also begin supplying only painted bodies for the Boxster-derived Cayman coupe which will then be final assembled in Stuttgart.

Should capacity utilisation reach its limit, Porsche will make use of Volkswagen's extensive manufacturing network. The VW plant in Hanover, Germany, already supplies painted bodies for the Panamera.

Porsche said it had record high orders in May and June. The company lost its independence to Volkswagen last year after nearly going bankrupt trying to acquire the larger automaker.

Auto market intelligence
from just-auto

• Auto component fitment forecasts
• OEM & tier 1 profiles & factory finder
• Analysis of 30+ auto technologies & more