Two problems related to engine head gasket leaking have been reported for the 2003 Subaru Outback. The most recently reported issues are listed below.
After previous repairs to transmission fluid leak and head gasket repair, the car's transmission failed and had to be rebuilt. The transmission failed as I was driving. I could not shift from first to second. I was able to get the car to the dealer by driving in first and living with a sharp clunk into second. I was close to the dealer or else this would have been a tow. If this had happened on the freeway it could have been catastrophic.
I purchased this vehicle used from a dealer. A few monthslater I started noticing a burning smell after driving even a short distance. Took it back to the place of purchase to have their service check it. They said head gaskets were leaking and quoted a repair price of $1800 ! I contacted Subaru of America after I did a research on the internet and found that many people had the same problems but there had been no recalls! some customers were lucky and did get some kind of compensation. I took it to my personal mechanic who told me he has seen a lot of these same cars with the same problem due to the way they were manufactured! I contacted Subaru of America again but they only offered a $500 discount on a new vehicle! the manufacturer should honor this complaint and pay for the gaskets replacement as it is happening in too many of these models!.