2006 SUV of the Year Winner

With its live rear axle, and--in full off-road specification--tall tires and simple transfer case, the new Nissan Xterra seems somewhat old-school against some of its more sophisticated (and more expensive) opposition. But there's a compelling honesty about the Xterra that won over the judges. Nissan has built a sport/utility vehicle that does exactly what its customers want; it's tough, rugged, versatile, fun--and with the right options, it'll take you and your stuff almost anywhere you want to go. Best of all, it's not going to cost you a fortune.

The Xterra's apparent simplicity also belies a clever product-development process that's allowed Nissan to deliver maximum bang for your buck by repackaging proven components and concepts. The Xterra is based on a shortened version of the versatile, American-engineered F-Alpha platform that underpins vehicles ranging from the Armada and Pathfinder sport/utilities to the Titan and Frontier pickups. Its punchy 4.0-liter V-6 is a stroked version of the engine that powers the sporty 350Z. And although it looks, at first glance, similar to its predecessor, its exterior boasts broader shoulders and a taller physique that translates into more leg, shoulder, and headroom inside. Dimensionally, the wheelbase has grown by two inches, yet overall length has increased only 0.7 inch, improving approach and departure angles, helpful when dealing with obstacles on a trail. Focus and execution, not frills and extras: That's why the Xterra works.

The prior-generation Xterra offered a four as well as the choice of a normally aspirated V-6 or a supercharged variant. In the new Xterra, all you get is the V-6. And that's no bad thing: The new engine puts out 55 more horsepower and 38 pound-feet more torque than the old supercharged V-6 and has 122 more horses than the I-4. With four-wheel-drive models, the 4.0-liter has secondary mapping that comes into play in 4-Lo to adjust throttle response. While a six-speed manual is standard, our Solar Yellow version came with the five-speed automatic. Four-wheel disc brakes with ABS are standard, as are dual front airbags. Side curtain and supplemental side-impact airbags are optional. The trademark rear-door first-aid-kit bulge returns, as does an evolved version of the easily recognizable roof rack, now with a covered cargo area. There are even steps cut into the sides of the rear bumper, making it easier to extract gear strapped to the roof.

Inside, the feeling of honest-to-goodness value continues: You're not overwhelmed by bells and whistles, but the Nissan has the technology and electronics that keep it from feeling bare-bones. Features in the five-passenger, cloth-only cabin are simple and easy to use. The layout was revised and the HVAC controls improved (now big, easy-to-reach dials), and Nissan added more storage spaces to the front and rear rows. Many judges were impressed by the comfort and support provided by the front seats and the decent storage space with medium-size map pockets, cupholders, and center console.