October 22, 2003, with the debut of the third-generation Legacy at the 60th Frankfurt Auto Show, the Outback name is now being used in all markets with the launch of the third-generation Outback wagon, in order to rationalize the name Outback, which prior to then had only been used in export markets. Models equipped with a 3.0 L H6 were introduced at the 2004 Chicago Auto Show. The ground clearance is 8.5 in (220 mm).
The Outback carries the same model codes as the Legacy Wagon, BP9 for the 2.5 liter, and BPE for the 3.0-liter model. The highest trim level offered in the USA is the Outback L.L. Bean that offers optional equipment as standard, including wood and leather steering wheel, an auxiliary port on the stereo for MP3 player compatibility, perforated leather seats, GPS navigation, double sized, one piece, glass moonroof and the H6. Starting with this generation, the interior retractable rear cargo cover has a separate storage compartment in the spare tire storage area so that the cargo cover can be removed for large items but stored inside the vehicle and out of the way.
A new Outback variant for 2005+ is the Outback XT. This model comes with Subaru's turbocharged 2.5L 4-cylinder engine found in the Impreza WRX model. This engine produces 243 hp (181 kW), which is much higher than the naturally aspirated 2.5L producing 175 hp (130 kW). The XT model can be equipped with any of the 3 standard transmissions: 4-speed Auto-SportShift, 5-speed Auto-SportShift, or 5-speed manual.
In July 2008, Subaru ceased offering a special edition L.L. Bean trim level on the Outback. Subaru beefed up their AWD 4EAT transmission's design and released the 5EAT w/ SportShift in 2005 The Outback received styling revisions for the 2008 model year, notably an enlarged, chrome-ringed grille. As of the 2008 model year, the Legacy wagon and Outback sedan were discontinued in the United States, leaving the Legacy sedan and Outback wagon. The JDM and EU diesel model has a "Start/Stop" button (in the top-of-the-line-model), found in Lexus, Infiniti, Audi and other high end makers.
For 2008, the 2.5i USA model has been certified PZEV emissions, and a badge has been attached to the rear of the vehicle on the bottom right hand side of the tailgate. All other models are certified LEV2. The PZEV Outback is available for sale in all 50 states, unlike other manufacturers who only sell PZEV certified vehicles in states that have adopted California emission standards.
In 2007, the Outback (along with the Ford Mondeo) won Top Gear's "Car of the Year" award.
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