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Its hard to believe that we first reported that Subaru could bring its much-anticipated diesel engine here to the U.S. over three years ago. Between then and now, the company has remained indecisive due to high diesel fuel prices and stringent emissions requirements here. Needless to say, the diesel boxer is still nowhere to be found stateside, but this might change soon.

The Japanese market has never been particularly fond of diesel cars, but Subaru is getting ready to try anyway. Subaru launched its first diesel boxer engine in Europe in 2008 and so far has sold over 30,000 examples. The diesel accounts for 54.1 percent of Legacy sales in Europe right now. With new emissions regulations set to take effect in Japan in 2010, Subaru is working on improving its diesel before offering it in the home market. At theNew York Auto Show we spoke to Subaru spokesman Domin

Click above for a gallery of the Subaru Impreza diesel

The Japanese yen is currently causing lots of problems for Japanese automakers. When the yen is weak, profits go up for Japanese companies that make most of their money by exporting vehicles to other countries. Conversely, when the yen is strong - as it is right now, having hit its highest valuation in 13 years - profits diminish. Subaru is just one of the automakers that's finding it tough to make a buck (or a yen) these days, and it has responded by indefinitely delaying the launch of its oil-

Click on the photo to see the gallery of high-res shots of the display engine

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