Subaru Impreza 2003 Review

In a move which will further define the small-car performance market, plans are well advanced to introduce a 220kW 2.5-litre turbo as the stand-alone powerplant for the pink-badged performance star.

"Yes, that engine will probably be in the next generation of the STi we get," Subaru Australia managing director Trevor Amery says.

The primary ADR issues are with emissions and drive-by noise levels but both, Amery believes, can be overcome without major problems.

A quick blast in a US-spec car at Subaru's research and development proving ground outside Tokyo recently confirmed that the 2.5 Turbo STi is a generational step forward for the WRX STi. Around the 4.5km oval track, the car topped out at an indicated 250km/h, reeling in the majority of that pace without fuss.

On the twisty handling circuit, the additional urge out of corners was clearly apparent with the chassis lapping up the extra power with ease.

"At this stage, barring other problems, I could see this car in Australia by the end of next year," Amery says. "We would certainly like to have it . . . and are negotiating towards that end."

He says there are no plans to put a detuned version of the 2.5-litre turbo into the base WRX.

Subaru Australia general manager Nick Senior, who is responsible for Subaru's Australian rally program, says the 2.5-litre WRX engine may endanger the company's rally involvement.

"Group N is homologated on 2-litres and there would be a risk that if the 2.5-litre was available in the WRX, then it could become so popular that in a relatively short time the 2-litre engine would no longer meet production requirements," Senior says, referring to the rule that 2500 production models of a car must be produced each year before it can be homologated for Group N rally events.

While the high-performance version of the 2.5-litre turbo engine is currently exclusive to the US, its garden variety sibling will hit Australia late next month as part of the new Forester range.

To be badged as the XT, the 2.5-litre will replace the Forester GT turbo, which was dropped from the top of the model line-up a year ago.

The larger capacity engine will sit on top of the Forester range, which also will include the entry-level X and non-turbo XS.

Amery also quashed any suggestion that the Baja, a twin-cab ute-style recreational vehicle built in the US, had a future in Australia.