UPDATE: Previous rumors that Subaru might be dropping its WRX and sedan bodystyle when it launches the next-generation Impreza are claimed to be false, according to Subaru officials. The new Impreza range is still expected to be unveiled at the 2007 New York Auto Show in April.

Subaru’s not going to let Mitsubishi and its Evo/Lancer steal all the limelight. The company is set to strike back with the unveiling of its all-new Impreza during April’s 2007 New York Auto Show. Subaru will offer a new five-door hatch bodystyle in addition to the sedan, based on the unsightly B5 TPH concept car pictured above, which was previewed at the last Tokyo Auto Show.

The new hatch will stick with a horizontally opposed powerplant in either 1.5L or 2.0L guises, with drive being sent to all four wheels via Subaru’s symmetrical AWD system. To help its standing in Europe, Subaru will be launching a new range of turbodiesel engines that will most likely coincide with the launch of the new Impreza. There will be both 2.0L four-cylinder boxer versions as well as a 3.0L six-cylinder variant. However, the first models to get the new diesel engines will be Subaru's Legacy and Outback range.

Performance fans will be hurt to know that Subaru could possibly drop the WRX model in favor of focusing on its more potent STi range. According to reports, there are no plans to carry over the intermediate WRX model and instead the STI will move downmarket to fill the gap. Our own thoughts are that this information seems unreliable. The WRX brand is well known throughout the world for its promise of cheap, accessible performance and dropping it would be a mistake.

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