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My Subaru Outback began suffering a severe lack of power

Car: Subaru, Outback, 1996, 2.2L     -    Back to Fix-It    -    Subaru Repair Manuals

Q.Recently, my Subaru Outback 1996 2.2L, 135K miles. (manual transmission) began suffering a severe lack of power (i. e. you'd hit the accelerator pedal, engine would throttle up, but the car would not speed up). I've replaced the front and rear converters, but I still have no power.
I did not replace either of the O2 sensors (put back on the originals) that go on the converters... should they be replaced as well (though usually when any sensor is faulty the "check engine" light goes on, and it's not)? I have an entry level ODBII diagnostic device that doesn't say much (no faulty sensor, etc). I'm just not sure what else is causing the lack of engine power. Any suggestions?

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I already checked/done: Catalytic converters replaced, and also replaced faulty knock sensor prior to converter replacement

More Info required The first thing that caught my attention was when you said "(manual transmission) began suffering a severe lack of power (i.e. you'd hit the accelerator pedal, engine would throttle up, but the car would not speed up)."
That tends to lead me to the clutch area..
If different, please explain as much as possible ..

Addition I'm really glad to hear you're optimistic!
It's definitely like I mentioned, but with regard to the clutch area and more info:
I get no power whether I'm shifting gears or not. In other words, the car would be riding along and if I hit the pedal, very little response in terms of speed. However, (up-)shifting is also difficult, with the same sort of lack of power. Mind you, the engine starts just fine, and when idling, its seems OK as well.

Answer These symptoms are classic to "clutch disc/pressure plate" failure.
I have included some diagrams that show the major players.
With the mileage that you have indicated, along with your description of the symptoms, most likely the clutch assembly will need replaced. Continued use would eventually lead to not enough friction material to "engage"
Best of luck my friend

Answer Here is the diagram that shows the clutch system, AND the cost for replacement,keep in mind that you have to calculate the labor rate that the shop charges per hour, then apply it to the labor time.

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