Late last year we reported that Subaru had built the first horizontally opposed diesel engine. Since then work has continued and there are currently no diesel variants of any Subaru models available.
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However come 2008, Subaru are set to enter the diesel wars.

Our North American friends believe a Diesel powered Subaru Legacy (Liberty in Aus) will hit American showrooms next year followed by the Forester and Impreza.

Subaru Australia spokesman David Rowley told CarAdvice that although there is a great deal of interest for diesel variants in the Australian market, no timeline or particular models have yet been identified.

Reports say that after the initial launch of the Liberty diesel, Subaru will drop the efficient diesel engine into the Forester and Impreza. The Americans are expecting a Turbo-Diesel WRX by 2009. Another sign that Subaru is marketing the new Impreza WRX at an all new audience.

Further news from around the globe hints that Subaru are working hard on Continuously Variable Transmission (CVT) systems (currently available in a range of cars including the Honda Jazz, Mitsubishi Colt etc). There are currently no details as to which models will gain the transmission system.

Overseas reports have denied rumours the new STi will come with a DSG option to compete with the Evo X.

Subaru Australia are still waiting for the specifications - the rally champion will be launched in Australia early next year.