Subaru introduced the Impreza lineup in 1993 as a replacement for the Leone, and it brought a station wagon version as well, which was refreshed along with the rest of the range in 1998.
The Impreza was already a renowned name on the market after its first rally victories, and the GT-Turbo version started to be more appreciated on the streets. Thanks to its all-wheel-drive system, the car proved its qualities, especially on mountain areas and on loose and snowy surfaces.
The 1998 model sported a new front fascia, with a slim reversed trapezoidal grille that replaced the previous flat panel that blocked most of the space between the hood's edge and bumper. Subaru also replaced the bumper, which featured a broad grille in the apron and two side-scoops where it installed the fog-lights. The turbocharged version featured an air-intake and four vents on the hood, plus two big, round headlights on the bumper.
Inside, Subaru completely changed the dashboard. On the 1998 model, the center stack featured a flat panel for the HVAC controls and the stereo. It followed the Japanese styling with the climate controls installed on the upper side, making it difficult to access the controls for the sound system. In the back, Subaru installed a folding bench which expanded the trunk from a mere 356 liters (12.5 cu-ft) to a decent 1275 liters (45 cu-ft).
Subaru ditched the older 1.8-liter engine for the drivetrain and kept only three engines ranged between 95 hp and 218 hp.