To reduce its carbon footprint and improve the fuel-economy of its some of its vehicles, Porsche is developing new hybrid technology with sister brand Volkswagen that’ll be available as an option on its next-gen Cayenne SUV and Panamera four-door coupe. The new Cayenne is scheduled for release in 2010 and should achieve a fuel consumption figure of just 26.8mpg (8.9L/100km). By contrast, the current version gets by with a fuel economy figure of only 18.2mpg (12.9L/100km).

The information was revealed by Porsche’s director of hybrid development Michael Leiters in an interview with Automobilwoche. The next Cayenne is expected to be smaller than the current model, featuring shorter overhangs and will lose any pretensions of being a genuine off-road vehicle.

Development work for the new Cayenne is being fast-tracked by execs at Porsche, including CEO Wendelin Wiedeking who’s worried about worsening demand for thirsty SUVs and rising oil prices.