In 1994 Subaru used the second generation of the Legacy wagon as the basis for the first generation of the Outback wagon, which came equipped with the same 2.2L EJ22 engine used in the Legacy.
The 1995 model year Legacy Outback wagon was largely limited to cosmetic changes, featuring two-tone paint, larger wheels and tires, mud flaps, a roof rack, and upgraded upholstery, similar to the modifications on the previous 1994 model year Legacy Outdoor trim.
Production of the Outback was approved by Fuji Heavy Industries CEO Isamu Kawai.

The 1996 model year Outback, released in September 1995, incorporated more substantial mechanical changes, including a raised suspension increasing ground clearance to 7.3 in (190 mm), a raised roof borrowed from the Legacy Touring Wagon variant, and an optional 2.5L 155 hp (116 kW; 157 PS) EJ25 engine (the EJ22 remained standard).
This change was brought about in response to changing consumer tastes for a more durable and utility based wagon.
It was marketed as the world's first sport-utility wagon.
In Japan, the Legacy Grand Wagon was the equivalent of the Outback, released almost simultaneously in August 1995.

Encapsulating the sport theme of the Outback wagon, Subaru hired Paul Hogan, star of the movie Crocodile Dundee, as a pitchman for the vehicle.
The ad campaign, which debuted in fall 1995 for the 1996 model year, cost an estimated $20–22 million and included TV ads in which Hogan and an unnamed female companion outrun competing sport-utility vehicles by virtue of the Outback's superior stability, handling, braking, and fuel economy.
The advertisements successfully raised sales, with nearly 20,000 Outbacks sold in the nine months following the start of the campaign.
Hogan, a former car salesman, reportedly warned Subaru "You better be able to build a lot of these [Outbacks] because I'm going to sell the hell out of them."

The sedan version of the Outback was initially marketed as an experimental limited run of 300 in New England as the Legacy SUS (Sport Utility Sedan) for the 1997 model year at the urging of Ernie Boch Jr., the owner of the independent distributor for those states, moving to nationwide availability for the 1998 model year.
In 1994 Subaru used the second generation of the Legacy wagon as the basis for the first generation of the Outback wagon, which came equipped with the same 2.2L EJ22 engine used in the Legacy. The 1995 model year Legacy Outback wagon was largely limited to cosmetic changes, featuring two-tone paint, larger wheels and tires, mud flaps, a roof rack, and upgraded upholstery, similar to the modifications on the previous 1994 model year Legacy Outdoor trim. Production of the Outback was approved by Fuji Heavy Industries CEO Isamu Kawai.
The 1996 model year Outback, released in September 1995, incorporated more substantial mechanical changes, including a raised suspension increasing ground clearance to 7.3 in (190 mm), a raised roof borrowed from the Legacy Touring Wagon variant, and an optional 2.5L 155 hp (116 kW; 157 PS) EJ25 engine (the EJ22 remained standard). This change was brought about in response to changing consumer tastes for a more durable and utility based wagon. It was marketed as the world's first sport-utility wagon. In Japan, the Legacy Grand Wagon was the equivalent of the Outback, released almost simultaneously in August 1995.
Encapsulating the sport theme of the Outback wagon, Subaru hired Paul Hogan, star of the movie Crocodile Dundee, as a pitchman for the vehicle. The ad campaign, which debuted in fall 1995 for the 1996 model year, cost an estimated $20–22 million and included TV ads in which Hogan and an unnamed female companion outrun competing sport-utility vehicles by virtue of the Outback's superior stability, handling, braking, and fuel economy. The advertisements successfully raised sales, with nearly 20,000 Outbacks sold in the nine months following the start of the campaign. Hogan, a former car salesman, reportedly warned Subaru "You better be able to build a lot of these [Outbacks] because I'm going to sell the hell out of them."
The sedan version of the Outback was initially marketed as an experimental limited run of 300 in New England as the Legacy SUS (Sport Utility Sedan) for the 1997 model year at the urging of Ernie Boch Jr., the owner of the independent distributor for those states, moving to nationwide availability for the 1998 model year.
Subaru Outback