Subaru has announced that it will discontinue what has long been a unique selling point - its long-serving flat 'boxer' engine.
The engine - known for its iconic rumbling exhaust note and low, compact profile - paired to the brand's long-lived symmetrical all-wheel drive system, has defined Subarus since the 1980s.
While there's no end date for the engine in Australia just yet, the brand has announced it will pull all of its combustion offerings from the European market by the end of 2027.
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Electric vehicles to replace the boxer engined cars in Europe
In their place, Subaru will continue on with an EV-only line-up.
The brand has also announced that it will develop its own electric vehicles, separate from its current stable of Toyota platform-shared nameplates, from the Solterra mid-size SUV (based on the bZ4X) to the Uncharted (based on the electric C-HR+).
This may seem like the end of Subaru as we know it. The brand's identity has been tied to its iconic set-up, which has helped to make its versatile range of crossover-styled vehicles such a hit.
But the writing has been on the wall for the boxer engine for some time, despite Subaru's efforts to modernise it. While standard four-cylinder engines can be made to burn leaner, the flat engine design's more complicated cylinder heads, uneven exhaust system, and compromised oil distribution makes it inherently less emissions-friendly than a regular old inline-four, and that excludes Subaru's commitment to mate these engines with the additional burden of all-wheel drive.
Just how inefficient the boxer engine is
To give you an idea of the impact this has, a current hybrid Subaru Forester produces combined emissions of 140g/km, while the equivalent Toyota RAV4 hybrid AWD produces 25 per cent less emissions, at 105g/km. The Toyota even saves two litres of fuel per 100km (which, at the time of writing, is about $5 worth).
In today's strict new vehicle efficiency standard (NVES) environment, that's a huge difference, which could cost Subaru a fortune in fines, purchased credits, or investment in EV sales.
All of which makes it nearly impossible for Subaru to keep its iconic long-serving engine family in emissions-sensitive markets.
If you're a Subaru owner like me, you'll agree that it's the end of an era, but I would also argue that it's a development that will finally set the brand free.
By dumping the now antiquated technology (sorry Subie fans) it allows Subaru to finally re-think its range and, hopefully, become interesting again.
After all the brand was long a perfect fit for adventure curious buyers, something that it is slowly losing ground on as both Chinese and traditional rivals fight for more of a slice of the profitable market segment.
Rivals are lining up with better options under the bonnet
Just take a look at GWM's upcoming H7 off-road family SUV, or the entire coming Jetour and iCaur brands dedicated to the cause from Chery.
Even Hyundai wants a piece of Subaru home turf with its upcoming range of XRT and XRT Pro adventure variants of SUVs like the Santa Fe and Tucson, as does Nissan, earmarking once US-market exclusive Rock Creek versions of its X-Trail for Australia.
It really is an adapt-or-die moment for Subaru, the question is how does it stand out in such a crowded market and how does it hold onto its identity?
I'd argue it needs to hold onto the lifted wagon aesthetic typified by its Outback and Forester which has long made it a smart choice in a busy field. Leaving the long roof behind and chasing the more common coupe-style as seen on cars like the current Uncharted would have Subaru risk losing its identity in a sea of rivals.
Plus, while I'm usually an advocate for brands going EV only for the better of the environment - is that truly the right fit for Subaru at this time? Perhaps a range-extender hybrid powertrain will help it maintain its adventure ready appeal.
Renault and Geely-backed Horse Powertrain, which is keen to sell engines to other brands, even showed off a range-extender-specific four-cylinder engine at the most recent Beijing motor show which is designed to have an ultra-flat profile when laid on its side. Not a boxer, but halfway there.
It's all worth considering for Subaru, and while I don't see a world where the iconic Japanese brand makes it back into Australia's top-10 automakers, the death of the boxer finally offers it a way to reset in the midst of an existential identity crisis.