St. John’s NF—The Subaru Legacy is a bit of an enigma. In the early days of its existence, the very late 1980s, it was the halo car for the brand and the one the company used to contest the brutally rugged World Rally Championship.

But in 1993, with the introduction of the smaller, lighter and sportier Subaru Impreza, the Legacy was moved upscale to become the company’s more refined and less extreme offering. Ever since, the car has suffered a bit of an identity crisis; unfortunately, the introduction of a brand new fifth-generation version may not remedy this situation.

The beauty of a manufacturer like Subaru is that they’re always been a bit quirky, a bit niche. For example, they’re the only carmaker to have full-time all-wheel drive on every one of their vehicles. Subaru is also the only brand to make use of the horizontally opposed boxer engine for all their cars. These days, however, quirky and niche aren’t enough to secure a company’s future.

Thus, prior to developing the new Legacy, the company engaged in some serious market research to find out how to make their mid-size sedan more popular. What they learned is that North Americans wanted more space, more efficiency and a more conservative approach. As a result, the 2010 Subaru Legacy—although a good car—has that “design by committee” feel to it.

But let’s start with the positive.

The Legacy continues with Subaru symmetrical full-time AWD, absolutely one of the best systems on the planet. In driving the rugged roads in and around St. John’s, the car displayed the kind of surefootedness that generates real confidence behind the wheel. In fact, the all-wheel drive system is so refined, it’s completely free of the torque steer that hampers some competitors to this day. (Subaru has been building all-wheel drive vehicles for over 35 years now—their experience shows.)

Under the hood, there are some more changes, but much is similar. There are three different engines available with the Legacy and four different models to choose from. The Legacy 2.5i and PZEV (Partial Zero Emissions Vehicle) employ a 2.5-litre 4-cylinder (170 hp; 170 lb-ft of torque), the only difference being that the latter attaches special equipment for the engine and exhaust systems to create a near-zero emissions car.

For a sportier driving experience, you have the choice of the Subaru Legacy 2.5 GT (with its turbocharged 2.5-litre 4-cylinder generating 265 hp) or the 3.6R (powered by a 3.6-litre 6-cylinder boxer engine delivering 256 hp). Gone from the mix is last year’s 2.5 GT spec B, which was easily the most exciting car in the Legacy lineup.

But the new Legacy does have a new trick up its sleeve—namely, the new Lineartronic CVT (continuously variable transmission) that promises heightened responsiveness and fuel efficiency. Subaru claims that the Legacy 2.5i with the CVT can extract over 1000 km per tank of regular unleaded fuel during highway driving—more than some smaller, front-wheel drive cars.

While the CVT can hardly be called exciting, it does create a very sublime driving experience—so smooth—and is a major step forward compared to the company’s 5-speed automatic (the transmission found on the 3.6R). The new transmission, combined with revised tuning for all the engines, has given the entire Legacy line improved fuel economy.

In any of its various forms, the Legacy could never be accused of being a speed demon, just a reliably peppy car and the three versions tested in Newfoundland—the 2.5i, 2.5 GT and 3.6R—fit this classification perfectly. The GT was, of course, the most involving to drive; the engine was particularly responsive and the firmer suspension suited the Rock’s undulating pavement to a tee.

But performance is not the biggest difference with the fifth-generation model—the most significant change is to the exterior design. The new Legacy has gained a more aggressive stance with squinty headlights, a larger front grille, and muscular front and rear fenders. (While the car is now more “in your face,” I always thought last year’s car represented near-perfect design for a modern sedan: clean and understated.)

The new car is also larger than the previous version, adding to the bigger visual impact: 80 mm taller, 35 mm longer and 90 mm wider, to be precise. These dimensional increases have brought about a much longer wheelbase which has, in turn, translated into far more room for back-seat drivers. The Subaru Legacy is now a true mid-size sedan, whereas it used to be considered a “near-mid-sizer”. Trunk space has also grown by 30%—enough room for four golf bags. As before, the 60/40-split rear seats fold down flat to carry larger items, and the trunk hinges are recessed to better accommodate bulkier cargo.

There have been other refinements to the interior, including more high-quality materials and larger seats covered in premium fabric or leather. The options list includes as a Harman Kardon speaker system, a DVD-based navigation system, Bluetooth connectivity for mobile phones, and a MediaHub for iPod and USB stick integration with the audio system.

As part of this year’s theme of offering more for 2010, the entire Legacy line is also now more competitively priced than ever before. The 2.5i has an extremely attractive base price ($23,995), making it the only all-wheel drive mid-size sedan available in Canada for under $25K. If Subaru wants this new, fifth-generation Legacy to reach a broader audience, that’s certainly a great start.