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My first thought is a plugged catalytic converter. However, if you mean the same thing as I would when you say "lugs", this would occur any time you press down hard on the throttle. You don't mention any kind of misfire or check engine light and those would be critical clues.

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Q: What is wrong with a 97 Subaru Outback that lugs in first gear then fianlly gets some speed and is fine if you shift manually it is better than letting the auto trans do it its self?
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