The Real Reason Subaru Dropped The Legacy Sedan

Subaru's announcement to drop the Legacy sedan was not surprising. The writing was on the wall. Find out the real reason behind Subaru's decision. 

Subaru will drop the Legacy sedan, and it was the right decision. As I've covered, Legacy sales have been on a steady downward trend for a long time. Now it's official. Check my recent Legacy sedan report here. But were slow sales the real reason? 

Subaru of America says, "Discontinuation (of the Legacy) reflects market shifts from passenger cars to SUVs and crossovers and Subaru's transition to electrified and fully electric vehicles." Read my report here. 

All Good Things Must Come To An End?

Why would Subaru drop the Japanese automaker's longest-running nameplate? I will continue to track Legacy sales until the model is gone in another year, but before I explain Subaru's real reason, here's the May report from Subaru of America (SOA).

The Writing Is On The Wall

SOA reports delivering 1,527 sedans to customers in May compared with 2,058 models sold in May 2023. That's a 25.8 percent decline. 

Subaru sold 7,610 Legacy models in the first five months of 2024, compared to 9,613 sedans sold in the same period last year, a 20.8 percent drop. On paper, the decision appears to have been made because of slow sales. 

There's More Than Slow Sales

But there's more going on. Subaru Corporation dropped the Legacy sedan because the automaker needed to make room to build its hottest model, the Forester Compact SUV, in its best market, the U.S., where they have 75 percent of its global sales. 

The Legacy discontinuation will make room on the Lafayette, Indiana, assembly line for the Forester coming to Subaru of Indiana Automotive. I was the first to report that Subaru of Indiana Automotive (SIA) will begin building the next-gen Forester compact SUV in Indiana. Check my story here.

Production of the Legacy will end in the spring of 2025 after the 2025 model year. Production of the next-generation Forester will begin shortly after at SIA. 

Interesting Fact

SOA says, "The Subaru Legacy was designed for the American market, and on its debut in 1989, it became the first Subaru manufactured in the United States at Subaru's new Indiana plant, Subaru of Indiana Automotive." Now, it will be the first time a Forester is built in the US.

A New Era Begins 

The all-new Forester will be up next as soon as the last 2025 Legacy sedan rolls off the assembly line in America. The Forester will be built in America for the first time, which was a great move by Subaru Corporation and needed to happen. 

I received a statement from Scott Brand, President and Chief Operating Officer Subaru of Indiana Automotive.

"We're excited about Subaru Corporation's decision to build the Forester at our facility. Once again, they've demonstrated their confidence in our associates to build the company's most popular models. We take pride in these opportunities to remain a key contributor to the brand's continued success."

Why didn't Subaru expand the U.S. plant and build Legacy and Forester?

Subaru is transitioning to new electrified vehicles, hybrids and electric, and the smaller Japanese automaker needs more resources to do both, which it doesn't have. The Legacy was the chess piece that could be sacrificed to make room for the greater good. 

Forester Is The Top Priority Now

The U.S.-specification next-gen Forester and all-new Forester Hybrid will be built in the U.S. factory. Forester is the hot model now for Subaru of America to launch the brand forward. 

Legacy Sedan Buyers, You Have One More Year

Here is my new model information for customers still wanting the 2025 Legacy. 

For the 2025 model year, it's a carry-over model with few changes except for some minor equipment adjustments on the Legacy Limited trim. Here are the pricing details and model highlights. The good news is there's little price increase on 2025 models.

What is the price of the 2025 Subaru Legacy?

For the 2025 model year, the Legacy sedan is still available in five trim levels: base ($26,040), Premium ($28,340), Limited ($35,150), Sport ($35,640), and Touring XT ($39,340). Destination and delivery fees are included in the price above ($1,145).

How much did the 2025 Legacy price increase?

The Legacy Limited increased by +$2,115. A power moonroof, DriverFocus Distraction Mitigation System, navigation, and a 360-degree heated steering wheel are now standard on Limited trims.

The U.S.-built Subaru Legacy era is ending, and a new U.S.-built Forester era begins. It's excellent news for next-gen Forester buyers. This is the real reason why Subaru dropped the Legacy sedan. 

Now It's Your Turn

What will you buy as your next vehicle if you are a Subaru Legacy owner? Click the red Add New Comment link below and let us know.

I am Denis Flierl, a top Torque News reporter since 2012. I’ve invested over 13 years in the automotive industry in a consulting role, working with every major car brand. I am an experienced Rocky Mountain Automotive Press member. You'll find my expert Subaru analysis here. Follow me on my X SubaruReport, All Subaru, WRXSTI, @DenisFlierl, Facebook, and Instagram.

Photo credit: Tucson Subaru