The P 601 Z was a prototype small car developed by Sachsenring, the East German manufacturer based in Zwickau that also produced the Trabant. It was a hatchback design with 3 doors and 4 seats, built as a functional prototype (Funktionsmuster) in 1980/81, with the aim of updating the visual appearance of the Trabant 601 with minimal engineering effort while retaining that car's underlying technology.
The P 601 Z used the Trabant 601 running gear, with a 2-cylinder, 2-stroke engine of 595 cc producing 26 hp at 4200 rpm and 54 Nm of torque at 3000 rpm. A later development of the related program adopted a 4-cylinder, 4-stroke engine of 1043 cc producing 40 hp. The P 601 Z measured 356.5 cm in length, 153 cm in width and 138 cm in height, with a wheelbase of 230 cm.
The P 601 Z formed part of a longer series of unrealized modernization projects pursued by Sachsenring engineers from the late 1950s onward, none of which reached series production due to political and economic constraints in the centrally planned East German auto industry. Earlier proposals included the P 100 mid-size saloon of 1961 and the P 602 V functional model of 1965, followed in the 1970s by small-car studies such as the P 610 of 1974 and the P 1100 of 1979.
Following the P 601 Z, Sachsenring built the P 601 WE II in 1981/82 as a fully functional prototype, also based on Trabant series mechanicals but featuring a short fastback tail, enlarged glass area, and a front hood drawn down over the sides for improved access to the drivetrain, with its leading edge angled slightly upward ahead of the windscreen. This model was fitted with the drivetrain from the Volkswagen Polo, the same unit later used in the Trabant 1.1, and a production start date of 1988 had been envisioned for it before German reunification. From 1990 the P 601 WE II was displayed together with other unrealized prototypes in the Sachsenring factory museum. A related 1:1 wooden model, the 601 II B, had already been produced in 1983/84 with a modernized front-end design that had also been proposed for the P 1100/1300 project.