During the 1990s, Porsche faced financial difficulties, leading to a radical redesign strategy for the 911. The company collaborated with Toyota consultants to overhaul its Zuffenhausen manufacturing facility, adopting mass production techniques. The development of the 996 was shared with the entry-level Porsche Boxster (986), allowing for significant cost savings through interchangeable parts.
Designed by Pinky Lai under Porsche design chief Harm Lagaay from 1992 to 2006, the 996 was conceived as a 911 for the new millennium. It introduced a completely new body, interior, and the first water-cooled engine, replacing the air-cooled units of its predecessors. This change was driven by increasingly stringent emissions and noise regulations and the demand for a high-performance 4-valve per cylinder engine. The 996 retained only the front suspension, rear multi-link suspension, and a 6-speed manual transmission in revised form from the preceding 993. It featured a sleeker body with a more raked windshield, a drag coefficient of Cd=0.30, and new "fried egg" shaped headlamp covers. The 996 was 185 mm (7 in) longer and 40 mm (2 in) wider than its predecessor, 45% stiffer due to a high-strength steel chassis, yet 50 kg (110 lb) lighter despite additional radiators and coolant.
Initially, the 996 was offered as a coupé or cabriolet with rear-wheel drive, with four-wheel drive becoming available later. Following requests from Carrera owners regarding the resemblance to the lower-priced Boxster, Porsche redesigned the Carrera's headlamps in 2002 to match those of the high-performance Turbo. The original "fried egg" headlamp design could be traced back to the 1997 911 GT1 race car.
In 2000, the base Carrera model's power output increased to 224 kW (305 PS; 300 hp), though its weight also rose to 1,370 kg. 2001 marked the final year of production for the narrow-body Carrera 4 Coupé. In 2002, standard Carrera models received a facelift, and the M96 engine's capacity was increased to 3.6-litres across the range, yielding an 11 kW (15 PS; 15 hp) gain for naturally aspirated models. The 996-based Targa model, featuring a sliding glass roof system and a rear glass hatch for storage access, also began production in 2002. The Carrera 4S model, sharing the Turbo's wide-body look, brakes, and suspension, was also introduced in 2002.
The 996 Turbo debuted at the Frankfurt Auto Show in September 1999, going on sale in the US in the summer of 2000 as a 2001 model. It was powered by a water-cooled, twin-turbocharged and intercooled 3.6-litre flat-6 engine derived from the 1998 Le Mans winning 911 GT1 race car, producing 309 kW (420 PS; 414 hp) at 6,000 rpm and 415 lb⋅ft (563 N⋅m) of torque. The Turbo featured an all-wheel-drive system and was available with either a 6-speed manual or a 5-speed Tiptronic transmission. It had revised styling, a wider stance, new bi-xenon headlamps, and a retractable rear wing. US models featured an electronically adjustable rear spoiler that would rise at 76 mph (122 km/h) and lower at 36 mph (58 km/h). The bodywork was revised to accommodate three front radiators and 18-inch wheels.
In 2002, the X50 package was offered as an option on the Turbo, including larger K24 turbochargers and intercoolers, a revised ECU, and a quad-pipe exhaust, increasing power output to 331 kW (450 PS; 444 hp). In 2003, Porsche North America restated horsepower numbers due to SAE changes, listing the Turbo at 415 hp and the X50 option at 444 hp.
The Turbo Cabriolet was introduced for the 2004 model year, marking the first mass-produced Turbo Cabriolet since the 1989 930 Turbo Cabriolet. In 2005, Porsche introduced the Turbo S model, available as a coupé or cabriolet. The Turbo S included the X50 option as standard, along with Carbon fibre-reinforced Silicon Carbide (C/SiC) composite ceramic brakes (PCCB), a 6-disc CD changer, and aluminum-faced instruments.
The 996 platform served as the foundation for two lightweight GT variants: the GT2 and the GT3. The GT3 was based on the standard 996 Carrera but stripped of considerable equipment, featuring stiffer adjustable suspension and upgraded brakes. It used the bodyshell of the four-wheel-drive Carrera 4, which incorporated additional front-end stiffening.
The GT3 was produced in two versions. The Mk.I GT3, introduced in 1999 except in North America, featured a naturally aspirated 3.6-litre flat-six engine generating 265 kW (360 PS; 355 hp). This engine was shared with the 996 Turbo and was a derivative of the engine developed for the 911 GT1 race car. The Mk.II GT3 featured updated aerodynamics and a more powerful version of the 3.6 L engine rated at 280 kW (381 PS; 375 hp). The Mk.II was the first GT3 marketed in North America. A 2004 test of an Mk.II GT3 showed it accelerating from 0–97 km/h (0–60 mph) in 4.0 seconds and producing 1.03 g on the skidpad, the second highest number ever recorded by a street-legal vehicle at the time.
The GT2, the turbocharged counterpart to the GT3, was rear-wheel drive to save weight and avoid power losses through the transmission — primarily because GT2 class racing restricted all-wheel-drive systems. The GT2 received additional aerodynamic body parts and a re-tuned version of the 996 Turbo's 3.6-litre twin-turbocharged engine with larger turbochargers and intercoolers, a revised intake and exhaust system, and re-programmed engine control software, resulting in 356 kW (484 PS; 477 hp) at 5,700 rpm and 640 N⋅m (472 lbf⋅ft) at 3,500 to 4,500 rpm. This enabled acceleration from 0–97 km/h (0–60 mph) in 3.9 seconds and a top speed of 315 km/h (196 mph). The GT2's fixed rear wing (CFRP on post-2003 cars) was a concession to racing rules. The GT2 had no rear seat, no air conditioning, and came with a factory-installed roll cage. Both the GT3 and GT2 were available only with a 6-speed manual transmission.
The Turbo, GT2, and GT3 models used the aluminium crankcase of the air-cooled 911 with a true dry sump oiling system. The six separate Nikasil-lined cylinders were covered with two separately installed water jackets, each covering a bank of three cylinders, adding water cooling to a crankcase originally designed for air-cooled cylinders. The standard 996 Carrera engine had its cylinders and water jackets cast together with the crankcase.
In 2000, Porsche offered the 911 Millennium Edition, based on the Carrera 4 coupé, with only 911 units produced. It featured Violet Chromaflair paint, natural leather interior, dark burr maple trim, and polished "turbo look" wheels.
To celebrate the 911's 40-year history, Porsche introduced the 996 "40th Anniversary Edition" for the 2004 model year. This model incorporated the 996 Turbo's front-end and was exclusively available in GT Silver metallic paint, with the X51 power kit, turbo radiators, a limited-slip differential, sport suspension, unique polished 5-spoke alloy wheels, GT3 side skirts, a natural gray leather interior, and a "40 Jahre 911" logo on the engine cover. Power was increased to 254 kW (345 PS; 341 hp). Only 1,963 units were made, commemorating 1963 — the year in which the 911 was first introduced.
Porsche 911 996 models equipped with M96.01 and M96.02 3.4-litre engines and M96.03 and M96.04 3.6-litre engines, produced between 1998 and 2005, are known for certain mechanical issues including problems with the rear main seal (RMS), cylinder cracking, slipped sleeves, bore scoring, and the intermediate shaft (IMS) bearing. Some RMS issues were attributed to improper machining, sometimes requiring engine replacement. Porsche redesigned the rear main seal with a PTFE seal to address most RMS problems. Some early M96.01 and M96.02 3.4-litre models were factory-sleeved to correct manufacturing issues, but some of these sleeves could drop, leading to a slipped sleeve failure. The most widely known issue is the intermediate shaft bearing, which was the subject of the Eisen class action lawsuit; IMS failure rates of up to 8% were disclosed during discovery. These mechanical issues are very rare (less than 1%) in early MY98 models with a dual-row IMS bearing, and do not apply to the Hans Mezger-designed Mezger engine used in the GT3, Turbo, and GT2 models.
Hollywood custom car builder Eddie Paul created a modified 996 Carrera as one of three vehicles for Pixar's 2006 Cars promotional tour. The blue Porsche 996, named Sally, was designed to closely resemble a 2002 Carrera, with a slightly shortened wheelbase and a windshield tilted closer to vertical to accommodate the animated character's eyes. The vehicle is currently housed in the Porsche Museum in Stuttgart.
In 2007, a 2001 Porsche 911 was seized by Hoover, Alabama police during a traffic stop after 10 kilograms of cocaine were found hidden inside two compartments. The vehicle was redecorated in a two-tone police blue livery with a wing, light bar, and rear window lights, and unveiled in 2009 as a Hoover Police Department police car.
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