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Subaru Shuts Down Impreza To Make More Room For The Hot Outback Midsize SUV

The 2022 Subaru Impreza is one of the best compact cars, but why do sales keep falling? There are two reasons and one involves the 2022 Outback.

In another challenging year for Subaru of America (SOA), the 2022 Subaru Impreza compact sedan and hatchback sales keep dropping. SOA reports that 1,743 Impreza models were delivered to customers in May, a drop of 40.8 percent compared with 2,946 in May 2021.

"We're continuing to see supply chain challenges across the industry, and we are focused on delivering the top-notch vehicles and standout customer experience that Subaru is renowned for," said Jeff Walters, Senior Vice President of Sales.

2022 Subaru Impreza, 2022 Subaru Outback

Through the first five months of the year, Impreza is down 21.3 percent, with 12,202 compact cars delivered to customers compared with 15,508 in 2021. Our source close to Subaru tells us the 2022 Subaru Impreza production is now shut down for the entire year.

We would think Subaru would produce more Impreza compact cars with gas prices averaging near $5.00 per gallon and not shut down production for the year.

What is the Impreza fuel mileage?

The EPA says the 2022 Subaru Impreza gets 31 mpg combined city/highway and 28/36 city/highway mpg in the non-Sport CVT trims. The 2022 Impreza 4-Door sedan gets 26 combined city/highway and 23/31 city/highway mpg in the non-Sport CVT trims. The 2022 Impreza 4-Door sedan with the 5-speed manual gearbox has the same fuel mileage.

2022 Subaru Impreza, 2022 Subaru Outback

Why are Impreza sales falling?

The 2022 Subaru Impreza arrived with very little change and is in the sixth year of the product life cycle. It's been six years since Impreza received a complete remodel. It competes against the all-new Honda Civic, the best-selling compact car in America. The Civic is all-new for the 2022 model year. Until Impreza gets a complete remodel, it will have a hard time competing.

Outback production takes priority over Impreza

Since Impreza sales are slow, Subaru decided to shut down the compact sedan and hatchback production to make more room on the production line at Subaru of Indiana Automotive for the number one selling Subaru Outback. With the microchip shortage, there are only so many chips to go around, and Impreza gets cut.

2022 Subaru Impreza, 2022 Subaru Outback
photo credit: Schumacher Subaru

The Outback is the standout model in Subaru of America's SUV lineup, with 64,206 models delivered to customers in 2022 compared with 12,202 compact Impreza models sold in the first five months. The new rugged Outback Wilderness is a significant reason, and it's been a big hit with the automaker's customers with active lifestyles.

Impreza is losing sales to the Crosstrek

Compact car shoppers looking at Subaru have another option; many choose the hot Crosstrek compact SUV instead. The Crosstrek is a raised version of the Impreza with 8.7 inches of ground clearance, additional body cladding, X-Mode for off-pavement adventures, and a new 2.5-liter engine option.

Also, Check Out: The 2023 Subaru Crosstrek Pricing And Model Guide - Next-Generation Models Are Delayed Another Year

What's next for the 2023 Impreza?

The 2023 Subaru Impreza was set to get a complete remodel, but with the 2023 Crosstrek standing pat, Subaru will likely wait another year to update the compact sedan and hatchback. Stay tuned.

Subaru of America decided to shut down the 2022 Impreza compact sedan and hatchback production to make more room on the production line for the number one selling Subaru Outback. The 2023 Outback arrives this fall with a refresh while Impreza remains unchanged.

You Might Also Like: The 2022 Outback Continues To Impress - Why It’s Subaru’s Stand-Out Model

Denis Flierl has invested over 30 years in the automotive industry in a consulting role working with every major car brand. He is an accredited member of the Rocky Mountain Automotive Press. Check out Subaru Report where he covers all of the Japanese automaker's models. More stories can be found on the Torque News Subaru page. Follow Denis on Facebook, Twitter, and Instagram.

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Photo credit: Subaru USA


C Sherm (not verified)    June 11, 2022 - 7:14AM

Your article is partly right. 2022 Impreza production is done but the start of the 2023 Impreza production started. Imprezas are still being made. I cannot divulge too much information, just that Imprezas are still in production at SIA.

Joe Smith (not verified)    June 12, 2022 - 10:38AM

Definitely aren't done with production of the Impreza this year. They maybe making more outbacks right now, but they aren't done with Impreza at all. Your source definitely wasn't anyone at Subaru or that even really knows anything about subaru.

Dan Whisman (not verified)    June 12, 2022 - 10:18PM

Build an Outback Wilderness with a 6 speed manual and I might seriously consider buying it. Until then, no sale for you

Jane Butler (not verified)    February 5, 2023 - 11:32AM

We have a Subaru Outback now, our 3rd, and would love to see an EV Outback soon. i’ve been looking at other EVs and am interested in the current tax incentives. Get this EV outback into production asap