Subaru Legacy III (BE/BH) gallery (1998–2004)

The third generation Legacy transitioned exclusively to all-wheel drive models and introduced Subaru's 3.0-liter EZ30 flat-six engine.

Debuting in June 1998, the third-generation Subaru Legacy (BE sedan and BH wagon) eliminated front-wheel drive options entirely, offering Symmetrical All-Wheel Drive as standard equipment across all international markets. A compact multi-link rear suspension design was adopted to maximize boot volume in wagon body styles. Engine choices ranged from updated 2.0-liter EJ20 and 2.5-liter EJ25 four-cylinder engines to the new flagship 3.0-liter EZ30D naturally aspirated flat-six engine producing 220 hp. The engineering setup effectively combined the low center of gravity inherent to the horizontally-opposed engine layout with a rigid chassis frame, delivering precise handling and composure across dry pavement and slippery surfaces alike. Engine bay packaging ensured optimal front-to-rear axle weight distribution alongside efficient thermal cooling under sustained driving loads.

A facelift in 2001 refreshed front lighting, bumper styling, and trim accents. Enthusiast variants such as the B4 sedan and GT-B wagon featured sequential twin-turbocharged engines paired with Bilstein performance dampers. Global manufacturing of the third-generation Legacy wound down between 2003 and 2004. Designers placed a strong emphasis on cabin ergonomics, occupant visibility, and long-distance driving comfort. Robust mechanical reliability across the drivetrain and suspension components helped establish this generation as a benchmark choice within its competitive market segment worldwide.