For 1999, Subaru introduces the all-new next-generation 2000 Outback, which will go on sale in the summer.

Subaru says that changes to the new Outback are designed to improve safety and driving performance while increasing comfort and cargo room. To improve traction, a limited-slip rear differential now comes as standard equipment. Dual airbags are standard and seat-mounted side airbags are available as options. All passengers now have head restraints, and the center rear passenger gets a three-point, roof-mounted shoulder harness. The new model is stiffer, thanks to the newly designed Ring-Shaped Reinforcement Frame system that Subaru claims dissipates crash energy more effectively. A newly designed independent rear suspension increases cargo space by keeping shock towers from intruding into the cargo area. The rear suspension is a floating multi-link system mounted on a subframe that helps reduce noise, vibration and harshness, Subaru says. It comes with the 2.5-liter 16-valve four-cylinder boxer (horizontally opposed) engine that produces 165 horsepower (hp) and 166 lb-ft of torque. There is a choice of either a five-speed manual with continuous all-wheel drive or a four-speed automatic with a gate-type selector and active all-wheel drive.

In 1999 the Legacy Sport-Utility Sedan joins the Outback family. It gets the Subaru all-wheel-drive system, the boxer engine and four-wheel independent raised suspension, four-wheel disc brakes with four-channel anti-lock control. It is equipped with power rack-and-pinion steering and a four-speed automatic transmission. It has the same 2.5-liter engine as the 2000 Outback.

Other Subaru models have few changes for 1999, the most important of which are to its engines and transmissions.

The 2.5-liter 16-valve four-cylinder boxer engine has been reworked with a new intake design and gets more torque. It is rated at 165 hp and 166 lb-ft of torque. The 2.2-liter 16-valve four-cylinder boxer engine has been reworked for gains in horsepower and torque. It is rated at 142 hp and149 lb-ft of torque.

All models have revised four-speed automatic and five-speed manual transmissions. And all Legacy and Outback models equipped with 2.5-liter engines have changes to reduce noise, vibration and harshness.