McLaren, best known for its Formula 1 team, is setting up a new independent company to make new road legal supercars.

The new company will be headed up by former Mclaren Group boss, Ron Dennis.

The first series of McLaren Automotive sports cars will be rolled out by 2011. Production is targetted at 1,000 units a year, rising to 4,000 as new models are introduced.

McLaren Automotive already has more than 20 prototypes and hopes that will attract investors.