I mentioned it a few times above, here's the future of the Xterra starting in 2005. All vehicles will be required to have side impact airbags soon; too many SUV's t-boning cars and killing car drivers. The rule is expected to be issued by 2005.
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Bigger and more powerful than its predecessor, the second-generation Xterra is looking to bolster its image as a rugged no-nonsense SUV. (It used to be the good, inexpensive SUV. Expect price increases.)

It maintains body-on-frame construction but it now rides on a modified version of the F-Alpha platform found underneath the full-size Titan truck and Armada SUV. Although the overall length is nearly identical to the previous model, the wheelbase is up by two inches for more interior room and a less choppy ride. It's also 2.5 inches wider and nearly two inches taller than its predecessor making it one of the larger SUVs in the compact class. (The XTerra received the lowest rating issued for SUV's in rollover tests; 2 stars. By making it taller, they also had to make it wider to keep it stable)

While the previous model was plagued by a lack of power, the 2005 Xterra gets a major boost of power in the way of a 4.0-liter V6 that will produce more than 250 horsepower and 270 pound-feet of torque. Two transmissions will be offered: a five-speed automatic and a six-speed manual.

Four-wheel-drive versions will use a multimode transfer case that offers 2Hi/Auto/4Hi/4Lo modes for maximum flexibility in varying conditions.

Four-wheel antilock disc brakes are standard while an electronic stability control system is offered as an option. Interior space is up thanks to the stretched exterior dimensions. Nissan claims that front seat leg- and headroom are up by nearly an inch while rear-seat passengers enjoy over 3.5 inches of additional legroom and more than two inches of extra headroom (due to lower rear seats?).

New interior features include adjustable tie-down hooks in the cargo area, increased storage up front and an optional 300-watt Rockford Fosgate audio system. Safety conscious buyers will be happy to note than in addition to the optional stability control system, the Xterra also offers optional front-seat side-impact airbags as well as side curtain airbags that protect both rows of seats.

No pricing information is available yet.
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Engine Specific Info
The engine is a new variation on Nissan's VQ engine family. The VQ series makes use of variable valve timing, variable intake control, electronic throttle and an aluminum block and heads.

The 4.0-liter, double-overhead-camshaft V-6 will be rated at more than 260 hp and more than 280 pounds-feet of torque, Nissan said, but specifications won't be set production begins.

A 3.5-liter version of the VQ, which Nissan builds both in Decherd and Japan, is used in the Altima and Maxima sedans, Murano sport wagon, Quest minivan, 350Z roadster, Infiniti G35 sedan and coupe and Infiniti FX35 sport wagon.