Subaru’s much-beloved Outback wagon is no more.
Its famous name will live on as a midsize SUV, but the do-it-all off-road wagon that was synonymous with the Subaru brand in the US will cease to exist at the end of the year, the company said Wednesday.
The new seventh-generation Outback will compete directly against a host of recently refreshed midsize SUVs, including the Hyundai Santa Fe, Honda Passport, and Nissan Murano.
The Outback wagon was a brilliant Hail Mary for Subaru
Subaru introduced the Outback wagon in 1995 as an off-road-focused variant of its Legacy family sedan. There was also an Outback sedan until 2008.
Named for the unforgiving wilderness of Australia’s interior, the Outback featured bulky body cladding, a more aggressive front bumper with rally-inspired driving lamps, and extra ground clearance. The automaker even brought in Aussie actor Paul Hogan to resurrect his lovable Crocodile Dundee persona for its ads to really go all in on the naming scheme.
It was a gamble to help the struggling Japanese brand, which suffered from half a decade of declining sales, remain relevant in the face of growing demand for SUVs without actually offering one.
The Outback was a modern embodiment of the classic family station wagon. It served as a bridge between the ubiquitous family sedan and the truck-based SUVs of its time.
It worked. Subaru reported that its US sales increased by 31% in two years following the introduction of the Outback and went on to sell more than 3 million over the past three decades. It faced some competition from Volvo and others, but they never quite hit the mainstream.
Despite all of its successes, the Outback could not escape the struggles faced by the Legacy sedan in the marketplace. Sales dwindled to just 19,600 units last year.
Subaru announced a few months ago that production of the Legacy will cease at the end of 2025, leaving the automaker without a sedan to serve as the foundation for the Outback.
There’s actually a lot to like about the new Outback
The new Outback might look drastically different from its predecessor, but many core elements remain.
The Outback’s engine options remain the 2.5-liter naturally aspirated and optional 2.4-liter turbocharged boxer four-cylinder motors. The revised 2.5-liter produces 180 horsepower and 178 lb-ft of torque, losing two ponies but gaining two lb-ft of torque compared to the outgoing model. The optional 260-horsepower turbo motor shared with the three-row Ascent SUV carries over unchanged.
Both motors will continue to be paired with the brand’s Lineartronic continuously variable transmission.
There are also significant improvements.
The new Outback will still come standard with Subaru’s outstanding Symmetrical All-Wheel Drive, which now locks its center differential quicker to reduce wheel spin, and an updated version of its EyeSight driver assistance tech, which includes a third front-facing camera and newly added radar sensors.
The Outback will benefit from extra passenger and cargo space thanks to its taller SUV body.
Inside, Subaru says the cabin will see a 10% reduction in wind noise due to improved aerodynamics. There will also be an all-new standard 12.3-inch digital instrument display in front of the driver and a new 12.1-inch infotainment touchscreen with a more powerful processor for greater responsiveness and customizability.
The new Outback is expected to hit dealerships later this year, while the Wildnerness edition will arrive in early 2026.
Subaru has not announced pricing for the new Outback, which will continue to be built in Indiana, but the current 2025 Outback starts at just under $29,000.
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