The top brass at Porsche have given the go-ahead for production of the company’s mini crossover coupe, currently dubbed the Cajun, that will go head-to-head with the BMW X3 and Land Rover’s Evoque.

Part of the plan includes an expansion of the company’s manufacturing plant in Leipzig, Germany, that will be the production point of the Cajun. The plant will be expanded to include a new assembly line and...