After 36 years: Subaru stops producing the Legacy

Another Sedan leaves the production lines for good: Subaru announced in an internal email to its employees that by 2025 the last model year of the Legacy will be 2025, which has been continuously produced since 1989. Since 2020, the Japanese executive car is only produced at the Subaru plant in Indiana in the United States, and from that year, its marketing was discontinued in Israel.

The Legacy was launched at a time when Subaru was the best-selling car in Israel, with the Leone, which was reliable and cheap, but mediocre in every other aspect. It was opened for the largest market of the Japanese manufacturer, the American market, to be the first cars to be produced at the new factory then established in Indiana.

The first generation arrived in Israel in 1989, alongside 1.8-liter (103 hp) and 2.2-liter (136 hp) versions of the new boxer engine, Subaru specially developed for the Israeli market also a 1.6-liter version (95 hp), also equipped with a 3-speed automatic gearbox instead of 4 in the other versions, according to vehicle taxation regulations in the country, which increased the purchase tax for any vehicle with an engine capacity higher than 1,600 cc. In 1990, the limit was changed towards its complete abolition, and the threshold was raised to 2,000 cc, and the weaker model was discontinued.

The 1.6-liter Legacy landed in Israel with a price of NIS 45,000 for manual and NIS 47,000 for automatic. The 1.3-liter Leone manual then cost NIS 30,000 and the 1.6-liter manual NIS 33,000 s, with automatics costing an additional NIS 2,000. Despite this, the new car was successful commercially, helping Subaru extend its control in the local market until it was surpassed by Mitsubishi in 1993.

In the same year, the second generation of the Legacy was launched, which had less success in Israel compared to Mitsubishi Galant and Mazda 626. In 1998, when the third generation was launched, the Subaru importer chose to change its name in Israel to B4, based on the car's internal code at the manufacturer (B=Boxer engine, 4=4-cylinder engines), in an attempt to revive sales.

However, the third generation was also the first to receive a high-station wagon version with all-wheel drive, the Outback, symbolizing Subaru's focus on crossovers, in line with changing market preferences. The Outback was not successful in Israel, mainly due to high prices and Israelis' aversion to station wagon models, but it became the best-selling model in the United States.

For example, in 2023, Subaru produced 162,000 Outback models in Indiana, compared to 25,500 Legacy models. The latest and seventh generation of the model is produced with the familiar boxer engines pair, 2.5-liter (182 hp) and 2.4-liter turbo (260 hp), with a total of around 1.5 million Legacy models produced to date.

Facing strong competition in the market and the disappointing transition of Israelis to small Jeep cars, the B4 remains a car that is mainly sold to Subaru enthusiasts and those who believe in the reliability of Legacy, with deals for leasing companies. With the discontinuation of the sixth generation in 2020, no imports to the country have been made. In the vehicle database of the Licensing Bureau, which represents cars from 1996 and above with valid vehicle licenses, currently 8,541 models of B4 are registered.

Subaru has promised to launch 8 electric models by 2028, it is unclear if a sedan model will be among them, which could serve as a successor to the Legacy.