Porsche is setting up a new wholly-owned import, sales and service subsidiary in Switzerland.

The existing agreement with Swiss corporation AMAG Automobil und Motoren, based in Schinznach-Bad near Zurich) will end on 31 May, 2008 but AMAG "will continue to be an important trading partner in the market" after that, Porsche said.

"In adapting its sales structures, Porsche is responding to the changing demands brought about by the convergence of the European markets and the steady expansion of Porsche's model range," the company said.

"Through this new division of tasks with AMAG, Porsche aims to satisfy the high demands of Swiss customers even more successfully."

By the end of July in the fiscal year 2005/06, Porsche had sold around 1,700 vehicles in Switzerland.