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By October 1991 following a visit to the Tokyo Motor Show, Porsche in dire straits, began to devise solutions to succeed the poor selling 928 and incoming 968 (a heavy update of 944). In February 1992, Porsche began development of a successor to the 928 (mildly updated for 1992) and recently released 968. By June 1992, out of 4 proposals based on dual collaboration between 986 and 996 (993 successor) design teams, a proposal by Grant Larson and Pinky Lai was chosen by Harm Lagaay. In August 1992, a decision was made to develop the concept into a show vehicle, in time for the 1993 North American International Auto Show. After garnering widespread acclaim from the press and public upon presentation of the Boxster Concept in January 1993, the final production 986 production exterior design by Larson was frozen in March 1993. However, by the second half of 1993, difficulties arose with fitment of some components, resulting in lengthening of the hood and requiring another design freeze by fourth quarter of that year. Prototypes in 968 bodies were built to test mid-engine power train of the 986 by the end of 1993, with proper prototypes surfacing in 1994. Pilot production began in the second half of 1995, ahead of series production in mid-1996.

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