Psst! Subaru is on the money

New Forester starts at $38,000 and gets a bigger engine, reports ALASTIAR SLOANE.

Subaru New Zealand is trying to keep the lid on two important features of its upcoming Forester: the engine size and price.

But word on the street has it that the new model, due June/July, will be powered by the 2.5-litre engine from the Legacy and RS Impreza and not the 2-litre unit under the bonnet of the present model.

The 2.5-litre produces 112kW and 223Nm of torque. The 2-litre engine delivers 92kW and 184Nm.

Indications earlier in the year were that the 2.5-litre Forester might be too expensive for the segment, but the strengthening of the New Zealand dollar against the yen has made the more powerful version available.

America and Australia are taking the 2.5-litre version. Demand for the new model in both countries is at record levels. Indeed, Australia's initial monthly order will exceed New Zealand's entire order for 2002, despite talk that this country's first shipment will be massive by Kiwi standards.

Subaru New Zealand general manager Wally Dumper isn't saying much about the Forester, other than it "will give us the opportunity to strengthen our position in the small sports-utility market."

The only hint about specification and price from Dumper was: "With the weakening of the Japanese yen against our dollar we are hopeful we can price the new Forester competitively."

But Automotive News understands the all-wheel-drive Forester will come in three models, called the X, XS and XS Ltd and priced between $38,000 and $48,000.

The X and XS will have a choice of manual or automatic gearboxes. The leather-lined XS Ltd will be automatic only.

It is understood Subaru will aim the X at Honda's CRV and the XS at Toyota's RAV4. The top-line XS Ltd will find its own competition.

The new vehicle is roughly the same size as the outgoing model but the interior has been redesigned to provide more room for occupants and luggage. Comfort, refinement, driving dynamics and safety have also been improved.

The present Forester has won numerous car of the year awards internationally and has enjoyed a reputation of providing the best on-road comfort and driving dynamics in the class.

It was based on the philosophy of providing extra ground clearance for moderate off-road driving, while retaining the chassis dynamics of a conventional car or station wagon.

The concept was pioneered by Subaru with its Outback wagon. Most carmakers have since followed Subaru's lead.

Meantime, Subaru in Japan has hired Greek designer Andreas Zapatinas to style the next-generation Impreza, due in 2006.

Zapatinas, 44, is the former head of Alfa Romeo design and penned the Alfa 147. He has also worked for BMW and Pininfarina, one of Ferrari's styling houses.

Zapatinas starts work at Subaru next month. His arrival coincides with Subaru's plans to restructure its design department and unveil a heavily reworked Impreza before the end of the year.