The new Rex 550 has 2-cylinder 544 cc engine.
In April an updated Leone range was released. All body panels are altered slightly and the overall look is 'smoother' and more contemporary in appearance. A completely new dashboard with altered interior are also part of the update. Mechanically identical, with the exception of the rear track which was widened by 40mm.
Late in 1977 saw the introduction of the Subaru BRAT (Bi-drive Recreational All-terrain Transporter) as a 1978 model for the US market. This is a two-seater body with a pickup truck bed, with two seats welded into the bed to evade the so-called chicken tax on light commercial vehicles. It brought the US lineup to eight models in three trim levels. Most are in the DL trim except a base two-door, and the GF hardtop and 4WD models which share a higher specification.