We experienced problems with our 2000 Subaru legacy Outback as similarly reported in complaint # 766462 (transmission leaking fluid, smoking, failure). Subaru dealer refused to provide warranty service for the transmission work (2 incidents between Aug 2002 and May 2003), and only a letter by us in June 2003 (noting previous reports in NHTSA website & elsewhere) finally convinced Subaru usa headquarters to investigate the problem further. The fix Subaru performed was replacement of a seal between the transmission and differential housing, which seems to largely resolve the problem (although a slight smoke odor still occurs when driving at high speeds). Subaru usa also refunded all our previous charges by the dealer for prior unsuccessful repairs (which should have been free under the warranty). There appears to be an inherent defect in this transmission (4eat model) under high heat conditions, which has a long historical track record in this regard. In one incidence, we almost incurred a severe fire on the road and this could be a potentially fatal hazard. NHTSA should examine this problem closely with Subaru.

- Gaithersburg, MD, USA