Three problems related to gas recirculation valve (egr valve) have been reported for the 2004 Subaru Outback. The most recently reported issues are listed below.
The car burst into flames at 2:30 in the morning in my driveway. We last drove the car home at 10:30 the night before, so the car had been sitting for four hours in cold weather (around 20 degrees). The dogs started barking and I woke up to find my car burning in the driveway. Firetruck came around 5 minutes later and put out fire. Fire was burning around entire vehicle. Fireman said that fire appeared to be internal to the car and not caused by human intervention. Police put the fire down as a "routine" engine fire. I am very concerned about the safety of older Subaru vehicles.
We own two Subaru Outbacks, a 2003 wagon & 2004 sedan, both purchased new from, and serviced by, the same dealer, rafferty Subaru, west chester, PA. When the defrost is turned on, the air recirculation is not available. When following vehicles in rain &/or snow when the defrost is needed, external exhaust fumes are sucked into the car. . . In slow or stopped traffic, this has made myself and other occupants feel ill. The only solution is to turn off the defrost, but this allows the windows to re-fog / -frost cutting visibility. I've inquired twice at my Subaru dealer and they confirmed that the recirculation cut-off is by design, and have contacted Subaru via the internet and received the same answer, with reference to pages in my owner's manual describing the circumstance and no resolution.
I want to express my concerns for Subaru quality and reliability. As a family we have owned several Subaru Outback vehicles. Unfortunately, our 2002 had bad pistons that had to be replaced after only 11,000 miles of ownership. The vehicle still did not run correctly after the engine overhaul so we sold it and regrettably purchased yet another new 2004 Subaru Outback wagon, which is now at our local dealer having pistons replaced in the engine. This is the second time a 4 cylinder Outback in our family has let us down. I now know what kind of quality they build into their vehicles. We are knowledgeable owners and we maintain our vehicles to a really high standard. We feel the NHTSA should investigate engine piston quality in 2002-2004 (4 cylinder) Outback wagons so that other owners do not find themselves in an unfortunate and precarious position. The engine is junk!.