During the 1990s, Porsche was facing financial troubles and rumours of a proposed takeover were being spread. The signature air-cooled flat-6 of the 911 was reaching the limits of its potential as made evident by the 993. Stricter emissions regulations worldwide further forced Porsche to think of a replacement of the air-cooled unit. In order to improve manufacturing processes, Porsche took the aid of leading Japanese car manufacturer
Toyota, whose consultants would assist in the overhaul of the Zuffenhausen manufacturing facility, introducing mass production techniques that would allow Porsche to carry out production processes more efficiently. Porsche had realised that in order to keep the 911 in production, it would need radical changes. This led to the development of the 996. The sharing of development between the new 911 and the entry level Boxster model allowed Porsche to save development costs. This move also resulted in interchangeable parts between the two models bringing down maintenance costs. it was the first 911 that was completely redesigned, and carried over little from its predecessor as Porsche wanted the design team to design a 911 for the next millennium. Featuring an all new body, interior, and the first water-cooled engine, the 996 replaced the
993 from which only the front suspension, rear multi-link suspension, and a 6-speed manual transmission were retained in revised form. The 996 had a drag coefficient of resulting from hours spent in the wind tunnel. The 996 is longer and wider than its predecessor. It is also 45% stiffer courtesy of a chassis formed from high-strength steel. Additionally, it is lighter despite having additional radiators and coolant. The 996 had a similar front end as the entry-level
Boxster. After requests from the Carrera owners about their premium cars looking like a "lower priced car that looked just like theirs did", Porsche redesigned the headlamps of the Carrera in 2002 similar to the high performance Turbo's headlamps. The design for the initial "fried egg" shaped headlamps could be traced back to the 1997
911 GT1 race car. In 2000, Porsche introduced the 996 Turbo, equipped with a four-wheel-drive system and a 3.6-litre,
twin-turbocharged and intercooled flat-six engine generating a maximum power output of , making the car capable of accelerating from in 4.2 seconds. An X50 option, which included larger turbochargers and intercoolers along with revised engine control software, became available from the factory in 2002, increasing power output to . Also in 2002, the Carrera 4S model was first introduced. The C4S, as it is called among the enthusiasts, shares the wide-body look of the Turbo as well as the brakes and suspension. ==Turbo==