In 2000, for MY2001, Subaru updated the exterior with a modest facelift to the front, rear, sides, and the interior's dashboard. market first got the car starting in 1997 with either the 2.5-liter DOHC ( MY1998 only), and in 1999+ models changed to a 2.5-liter SOHC naturally aspirated engine (no turbocharged engines). There was a change in body styling for all 2001–2002 models, and the 2001/2002 GT spec also had a change in engine management and power output was increased from 125 to 130 kW (174 hp 177 PS).
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Essentially, manual cars are set up with more bias towards the rear than automatic cars. The manual transmission cars are set up with a near 50/50 torque split as a base setting, and it varies from there. If the automatic is placed in reverse or first gear, the transmission divides the torque 50/50 to both front and rear wheels. The transmission again compensates by sending torque to the front wheels for better steering control and braking performance. When braking or driving downhill, the vehicle's weight shifts towards the front, reducing rear-wheel traction. When accelerating or driving uphill, the vehicle's weight shifts rearward, reducing front-wheel traction, causing the transmission to automatically send torque to the rear wheels to compensate. Under slip conditions it can achieve an equal split in front and rear axle speeds. When the transmission detects a speed difference between the front and rear axle sets, the transmission progressively sends power to the rear wheels. The automatic transmissions used on AWD equipped vehicles will normally send 60% of the engine's torque to the front wheels and 40% to the rear wheels, using a computer-controlled, continuously variable, multi-plate transfer clutch. Size and price-wise, it fits between the shared Impreza platform, and the larger Legacy. Due to the Forester's low center of gravity, it meets the United States federal safety standards for passenger vehicles, and does not require a "risk of rollover" warning label on the driver's visor.
The Forester appeared after the introduction of the Nissan Rasheen in Japan with a similar appearance, and the Forester's Japanese competitors include the Toyota RAV4, Mitsubishi RVR, and the Suzuki Grand Vitara. However, the Outback Sport remained in production for the U.S. In it's domestic market the Forester replaced the Subaru Impreza Gravel Express, known in the US as the Subaru Outback Sport. It used the Impreza platform but with the larger 2.5-liter DOHC EJ25D four-cylinder boxer engine from the Subaru Outback, making 123 kW (165 hp 167 PS) at 5,600 rpm and 220 N⋅m (162 lb⋅ft) of torque at 4,000 rpm. Subaru advertising employed the slogan "SUV tough, Car Easy". It was built in the style of a car, but had a taller stance, higher h-point seating, and an all-wheel drive drivetrain. The Forester was one of the first emerging crossover SUVs. The Forester was introduced at the Tokyo Motor Show in November 1995 as the Streega concept, and available for sale in February 1997 in Japan, and to the US market in 1997 for MY1998.