Compact or midsize, Outback still fits in

When Subaru morphed its Legacy station wagon into a quasi-SUV in the mid-’90s, the resulting Outback represented the entirety of the brand’s presence in Canada’s growing segment.

Nearly three decades later — even though the automaker now has the mainstream crossover segments covered with the subcompact Crosstrek, compact Forester and midsize Ascent — the Outback remains a key asset in its lineup.

The sixth generation of the Outback, which received a midcycle facelift for 2023, is running second only to the Crosstrek in Subaru sales this year, according to statistics compiled by the Automotive News Research & Data Center. That, however, is an anomaly caused by supply constraints, Evan Lindsey, Subaru Canada’s car line manager, said in an Oct. 6 interview.

Normally, the Outback ranks third in Subaru’s Canadian sales, close behind the Forester. In pre-pandemic 2019, the Outback’s 11,000 sales, virtually unchanged from 2018.

In overall size, the Outback is really a midsize crossover, and that’s how it’s positioned and perceived in the United States, Lindsey said. In Canada, however, the Outback is priced in direct competition with compact-crossover stalwarts such as the Toyota RAV4, Honda CR-V and Subaru’s own Forester.

The base model of the 2023 Outback starts at $32,695, plus $1,995 in shipping fees. Subaru held a media preview Oct. 5-7 in Huntsville, Ont.

PICK YOUR COMPACT

“We haven’t actively positioned it as a compact; that’s just where it fell,” Lindsey said. And Subaru Canada is happy to leave it that way.

“We know they’re both going after the same competitor,” Lindsey said of the Outback and Forester. “It’s just … creating more variety and more options for our customers. We have two offerings in that space, and they can choose their flavours, so to speak.”

The Forester attracts customers who prefer the boxy shape and superior visibility of a conventional crossover or who are constrained for parking space, Lindsey said. The longer, lower Outback appeals to dog owners, skiers and golfers who value its longer cargo deck and those who prefer its more carlike driving dynamics.

Aside from exterior tweaks, including more black cladding that amps up the SUV styling cues, the main changes are electronic. They include the latest version of Subaru’s EyeSight driver-assist technology with available Wide-Angle Mono Camera and an updated multimedia system with available wireless Apple CarPlay and Android Auto.

There’s also a new Onyx trim, featuring a gray two-tone interior with all-weather seat upholstery.

7 TRIMS HIT ‘SWEET SPOTS’

Onyx brings the roster of Outback trim levels to seven. The Outback and other Subarus enjoy an unusually balanced mix of take rates for their various trims, compared with rivals that are heavily weighted to two trim levels, Lindsey said.

“That tells us that the way we’re packaging and pricing the cars, we’re hitting the sweet spots in the segment,” he said.

And Subaru Canada doesn’t limit sales of the base model. “Dealers can order whatever the demand is in their market,” Lindsey said.

While the number of trim levels may seem high, he said, Subaru Canada simplifies ordering and maximizes sales and production efficiencies by not offering factory options. Customers can buy dealer-installed accessories instead.

Before the pandemic and other market disruptions, Subaru experienced strong and steady growth in Canada. Consumer awareness of the brand is now strong relative to its market share, Lindsey said, but he suggested that sales still don’t fully reflect that awareness.

“We work really hard to ensure we’re offering exceptional value to our customers,” Lindsey said, while good fuel economy and high residual values mean low ownership costs.

However, he said: “We tend not to offer big discounts and incentives. Because we don’t have those 84-month terms and the low monthly payments, there’s a misperception the cars are more expensive than they are.”

Maximum loan terms run 48 months for leasing and 60 months for financing.