“The Impreza 2.5i is easily overlooked,” he explained at the launch of the 2008 version, in Victoria. “but you are getting a lot of car for under $21,000, and the compact entry-level market is potentially a very good market for us.” Last year, Subaru sold about 500 Imprezas a month; they’d like to bump that up by at least another 200 units. Yokoyama added that he would consider it “a personal favour” if journalists would take a long hard look at the Impreza 2.5i. “It will give you a rewarding and trustworthy ride,” he said.

Personal bias aside, Yokoyama is right about the new Impreza 2.5i. It is a lot of car for the money and may offer the tightest and best sorted-out handling in this very competitive marketplace, which comprises 25 per cent of the total new car market in Canada.

Essentially, the new Impreza is a brand new car. New chassis , new body style, new interior, new suspension and a slightly new drivetrain. Like all Subarus, it comes with all-wheel-drive, and Subaru has positioned the engine 22 mm closer to the ground to enhance the car’s centre of gravity….already one of the lowest in the industry. The result is a remarkably stable and predictable ride, in a car with more aplomb and poise than buyers have a right to expect in this market. When you pay $21,000 for a car, you don’t really expect to get one with proper handling, but in this case, it’s part of the package. If there’s a better handling car for the money, I’d like to hear about it.

Power for the new 2008 Impreza is provided by Subaru’s now ubiquitous 2.5 litre horizontally-opposed four cylinder engine that delivers 170 horsepower. Although horsepower is down slightly from ’07, an engine tweak – revamped cylinder head, different camshaft timing, and slightly different exhaust set-up - gives the Impreza better fuel economy and a flatter torque curve. According to Ted Lalka, vice-president of product planning and public relations for Subaru Canada, the new version has the same 0 – 100 km/h times as last years model, but much improved reserve passing power.

Transmission choices are a five-speed manual and four-speed automatic. The former also has a manual shift option and the latter, an optional Hill Holder Incline Start Assist. In a nutshell, this stops the car from rolling backward when you’re stopped on a hill. Subaru has also done a lot of styling work on the new Impreza, extending the wheelbase and shortening the body slightly.

Two body styles are offered: hatchback and sedan, and the result is more interior room and better weight distribution. It’s easily the best looking version of this car to date, and the hatchback model, in particular, has excellent visuals. It’s also their best seller. “Hatchback buyers and sedan buyers are completely different,”  adds Lalka. Interestingly, the four-door sedan Impreza is exclusive to the North American market.

Inside, you’re greeted with a completely new dashboard treatment, and what Subaru is calling a “twin-cockpit” design. Headroom is improved, and the seats have been given a new inner structure to deal with lumbar issues. This was a frequently-heard rap against the previous model: cheap seats , and it seems to have been dealt with.

Two versions of the 2.5i are offered: base and Sport. Equipment level is high, with things like air conditioning, power windows, four wheel disc brakes with ABS, rear window wiper on the hatchback, driver’s “dead pedal” foot rest, full instrumentation, and power mirrors all coming standard. There’s also a cool-looking “bee stinger” roof mounted antenna that adds to the car’s upscale flavour. Options include a traction control system, a vehicle dynamics control system, fog lights, aluminum alloy 16-inch wheels, heated seats and so on. These items tend to grouped together in “packages.”

There is also a WRX version of the new Impreza, offered in the same body configurations, but, thanks to a turbocharger and intercooler, it develops 54 more horsepower. It also comes with either a five-speed manual or four-speed automatic, but after driving both versions, the manual gearbox gets the nod from me, hands-down. For those who like to drive with enthusiasm – and, after all, that’s what the WRX is all about – the stick shift allows you to regulate vehicle speed and weight transfer much more accurately. Make no mistake, the WRX is a road-hugging monster, with a refined sense of balance and ‘way above-average handling and performance. Twin exhaust tips, a functional hood scoop, and larger 17-inch wheels and tires distinguish the WRX from the base Impreza.

Prices for the new Impreza range from $20,695 for the base model, going up to $33,895 for the WRX in hatchback trim. Katsuhiro Yokohama is right about something else: the new Impreza does come with a lot of potential…if people don’t overlook it.