Subaru, it was Subaru that introduced Renault to Nissan when they asked for assistance in all-wheel drive (AWD) technology, when FHI told Renault to discuss their plans with Nissan, the discussions eventually led to the successful Renault-Nissan alliance.
In the United States, the Subaru attracted a following among the young and educated, and as a lightweight SUV alternative to the likes of the Ford Bronco and Jeep Wagoneer or even the expensive Volvo. It has historically been popular in US regions such as the Pacific Northwest , the North American Rocky Mountains region, and especially in New England, with relatively high resale values and owner loyalty rates. However, facing pressure from competition from the large Japanese brands, Subaru would switch to marketing only AWD cars and wagons. The Subaru Outback wagon, based on the Legacy and modified with SUV-like stance, bumpers, and roof, became the best selling wagon in the US during the 2000s. In the 1990s the company moved away from small commercial vehicles and concentrated on the development of mainstream passenger car models, starting with the Legacy and including the controversially styled six-cylinder SVX (1992), and the Impreza (1993).
When Subaru introduced the Legacy in 1989, it was a new direction for Subaru, as the Legacy was considered mainstream in its appearance and a departure from their previous vehicles, which had a reputation of being "quirky". It was perceived by some as Subaru's attempt to compete with new luxury brands Lexus, Infiniti and Acura, as Japanese vehicles were increasing in popularity, particularly in the USA.
For the 1990 Formula 1 season, Subaru fielded the Subaru Coloni C3B. It featured a 12 cylinder boxer engine, but was not competitive because of horsepower and weight disadvantages . With the rise of rally racing, and the Import scene in the US, the introduction of the highly anticipated Subaru Impreza WRX in 2001 was successful in bringing high performance, AWD compact cars into the sports car mainstream. In 1995 the company created the Sambar EV electric van. In 1997 the Forester was introduced to the world market, followed by the third generation design of the Legacy platform (1998).
During the General Motors period, a modified Impreza was sold in the United States as the Saab 9-2X. A SUV (Subaru Tribeca / SAAB 9-6X) was also planned but the SAAB version did not proceed.
From 1995 to 2000, Subaru ran a series of advertisements for the Subaru Outback which starred Paul Hogan. The advertisements were intended to highlight Subaru's all wheel drive, and depicted the Outback in a number of rugged Australian locations. The tagline "the world's first sport utility wagon" was successfully used by Subaru, though the AMC Eagle had tried much the same idea, with less success in the 1980s.
On October 5, 2005 Toyota stated that it will purchase 8.7% of the shares of FHI from General Motors. GM announced that it will divest its 20% stake in and eventually sever all ties with FHI. FHI has stated that there have been 27 million shares (3.4%) acquired before the start of trading by an unknown party on October 6, 2005. It has been speculated that a bank or perhaps another automaker was involved. Toyota announced a contract with Subaru on March 13, 2006. The under-utilized Subaru of Indiana Automotive plant in Lafayette, Indiana will hire up to 1,000 workers and set aside an assembly line for the Camry model, beginning in spring 2007.
Subaru displayed a variable vane, common rail turbodiesel boxer engine at the 2007 Frankfurt International Motor Show. It is the world's first horizontally-opposed diesel engine. The engine is rated at 110kW(147hp) and 350Nm(258Ft/lb) with a displacement of only 2.0 liters. In March 2008, Subaru will offer the Legacy wagon with the 2.0 liter turbodiesel in the UK with a 5 speed manual transmission only. EPA fuel economy listed is 32.7-33.6/45.2-49.0 mpg (est city/highway)
