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The old reliable Subaru Outback blazes through generations

Casey Williams, Tribune News Service on

Published in Automotive News

An early Subaru Outback ad from 25 years ago claimed the wagon had "more cargo space than a Honda Passport, more driver headroom than a Jeep Cherokee, ground clearance like a Ford Explorer, plus the riding comfort and fuel economy of a passenger car."

Not much has changed, yet much has changed.

"It was kind of that SUV, all-wheel-drive vehicle before it became a popular thing," said Jessica Caldwell, executive director of industry analysis for Edmunds. "It's pretty clear what the product is about and it's found its specific niche in the marketplace. It has a long history, very legitimate, in a space where many vehicles are newcomers."

Looking back today it may seem like a slam-dunk, but the prospects of a jacked-up station wagon back in the mid-1990s were dubious. Then, the utility market was dominated by truck-based SUVs like the Chevy Blazer and Ford Explorer.

Subaru built no trucks, so it embraced its four-wheel-drive heritage, raised the Legacy wagon, slapped on an adventurous name and enlisted "Crocodile Dundee" star Paul Hogan as its pitchman.

"We recognized it as a unique car from the beginning," said Peter Tenn, car line planning manager for Outback. "The Outback was developed in America when the company wasn't doing very well – less than 1% share. We decided to capitalize on our all-wheel-drive system, which was very robust, and on SUV cues of the day. It captures what people want in a crossover: MPGs, size, handling. With 8.7 inches of ground clearance, it's a trusted friend you can take anywhere and it will see you home. Having Paul Hogan in ads helped resonate with the public."

 

Outback has become considerably more popular over the generations. The first generation, which debuted for 1996, and the second that ran 2000-2004, sold 200,000 units each. It increased slightly for the third iteration. Coinciding with a larger body, the 2010-2014 fourth generation spiked to 450,000 units, while the most recent edition posted 700,000 cars from 2015-2019. It's Subaru's best-selling or second-best-selling vehicle, depending on the year (vs. Forester).

By demographics, Outback customers are an interesting lot. Sales shake out 52% male, 78% married and 25% with kids at home. Many are well-educated; 37% have college diplomas, while 32% earned post-graduate degrees. Typical household incomes range is $75,000-$99,000. These are people who generally can afford more expensive cars, but choose Outbacks for their understated style and capability.

"It's really important in terms of sales -- about a quarter of Subaru's volume," Caldwell said. "It's a cornerstone vehicle -- the poster child for the go-anywhere movement. ... For 2020, it seems like they improved on a vehicle that was already popular. It's not a major departure. ... They stay in a narrow lane and do it well."

Seeds were planted back in 1975 when Subaru introduced the Leone series compact wagon (forerunner of today's Impreza) with an elevated ride height and four-wheel-drive. The automaker continued building AWD compact wagons through the 1980s and '90s, culminating in a soul-searching moment during 1993 when every model adapted AWD for better differentiation in the market. Building a larger wagon seemed sensible.

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