The company plans to release at least one new Subaru a year in the European market between now and fiscal 2010 using its new boxer turbodiesel engine (earlier post).

Subaru will follow the diesel Impreza with a diesel Legacy in 2009, according to the report. Fuji Heavy’s current four-year business plan through fiscal 2010 calls for a 40% increase in car sales in Europe—an increase to 100,000 units.