Nigeria Content Online

Zenith Bank said on Monday its pre-tax profit rose 12 percent to 13.2 billion naira ($88 million) in the first three months of this year.

Turnover grew 4.6 percent to 55 billion naira in the period, the bank said in a statement to the Nigerian Stock Exchange.

REUTER

Ecobank Nigeria Plc has refuted the claims of three customers
from its Ogoja branch in Cross River, stating that it did not collect any
deposits as claimed by the complainants, and as such is not liable to interest
payment as demanded.

The three customers of the bank, John Lukpata, Boniface Ugbem
and Okpe Idagu, had earlier accused the Ogoja branch management of the bank of
defrauding them bank of the interest accruing to the millions of naira fixed
deposit the lodged with the bank.

The customers, in their joint petition to the managing director
and chief executive of the bank, appealed to him to investigate their claims,
saying they had not been told the truth about the gain they made on their
deposits.

The claim

Specifically, the customers accused the Ogoja branch manager of
the bank, Michael Takim, of playing a fast one on them and have since taken
their case to the bank’s headquarters of the in Lagos for necessary action.

The counsel to the acclaimed defrauded customers, in his
petition entitled “Demand for the payment of our Deposit with your Bank”,
claimed that, acting on the “sound” financial advice of Mr. Takim, on the 18
August, 4 September and 3 October, the three customers lodged sums of money to
the tune of 11 million naira in various fixed deposit account with the branch.

The petitioners allege that, contrary to expressed terms of the
transactions as contained in the fixed deposit certificate issued them which
stated that the interest rate at maturity of the deposit was 14%, “no money was
paid to us at the maturity of the deposit”.

They consequently called on the managing director to take
immediate action considering the fact that, according to them, the delay in
paying them their deposits has caused them “undue pain and unnecessary
embarrassment”, with many of them forced into debt to meet their basic
obligation to their families.

The demands

The petitioners have thereby demanded the bank’s head office intervene
or risk the inquest of the Economic and Financial Crime Commission (EFCC) into
their allegation.

“In the circumstance, we hereby demand for the payment of our
deposit within fourteen (14) days falling which we shall process to seek other remedies
to recover our money without further notice,” they said, adding that, if the
agreed interest on their deposits is not paid by the bank, they will, beside
legal action, report the matter to the EFCC.

They emphasised that, if it was the other way round, the bank
would have since seized their assets and taken them to court for default.

Attempts to get the reaction of Mr. Takim to the allegations
were futile as he was said to have been summoned to the head office over an
undisclosed mission.

‘Not liable’

However, the bank, in its response to NEXT enquiries, said the
customers’ claim to have paid money into the bank is unfounded. “They do not
have payment slip to show in this regard, neither is there an acknowledgment in
the bank’s records that they had investments with the bank,” the bank’s
statement claimed.

According to the bank, the aggrieved customers went into a
private deal with the bank manager that flopped, and they were seeking ways to
rope the bank into the chaos, as means to recover their lost funds.

“Okpe Idagu, John Lukpata and Boniface Ugbem customers of
Ecobank Ogoja Branch entered into a private business deal with our former Ogoja
Branch Manager, Mr. Micheal Takim – that is to fund oil and gas business that
failed,” the statement further said.

The bank disclosed that the case has been reported to the police
in Calabar, who have since commenced investigation.

“Micheal Takim has made a statement to the police detailing the business
arrangements leading to the collection of monies from the complainants above,”
the bank concluded. “The bank did not collect any deposits from the
complainants and as such is not liable to interest payment as demanded.”

The continuous bullish trend being recorded at the Nigerian
Stock Exchange has been attributed to the positive macroeconomic performance
witnessed in the first quarter (1Q) of the year, equity research analysts at
Renaissance Capital have said.

The investment analysts, in a statement on Monday, said “Robust
macroeconomic performance in the first quarter of the year support equities’
gains.” They supported their claims with the figures reported by the Central
Bank of Nigeria (CBN), during last week’s meeting of the monetary policy
committee.

The CBN announced that macroeconomic performance in 1Q of 2010
was sound, with gross domestic product growing 6.7 per cent (up from 4.5 per
cent growth in 1Q09), inflation relatively constant at 12.3 per cent (as
against 12 per cent in the 4Q09), and the naira stable at about N150.43 per $1
on the interbank market.

Market forecast

Predicting market performance for this week, Renaissance
analysts said “This week, we are confident that equities remain the strongest
play on expected strong corporate earnings releases – particularly from
consumer and banking names – and we think investors would be well advised to
move out of fixed-income securities and into equities, in light of the
substantial depression in the yield curve.

“We are bullish on non-financials that have lagged the market in
the recent rally. We also favour those financial stocks for which we see a
build-up in demand: such as BCC, UACN Properties, Diamond Bank,” they added.

Meanwhile, Proshare Nigeria Limited, an investment advisory
firm, said it is expected that investors will continue to chase after the
stocks of companies that declared returns.

The company noted despite the bearish trend recorded in two
trading days during the past week, the stock market closed on a positive note.
The market at the end of the week recorded appreciations in three of the five
trading days. It said the sell pressure recorded in the two trading days could
be attributed to “investors’ besieging the market for profit taking” following
the six trading days appreciation earlier recorded.

However, Proshare said it would augur well for the market and
the investing public in general if all the quoted companies can declare their
financial results on time, “instead of unnecessary delay that keeps investors
in suspense.”

Gainers and losers

At the close of trading on Monday, Guinness Nigeria and Mobil
Oil Nigeria topped the price gainers’ table with an increase of N7.74 and N7.57
on their opening prices of N154.99 and N151.44 per share. Oando Oil and Julius
Berger Nigeria followed in the chart with an increase of N6.02 and N2.67, to close
at N126.53 and N56.14 per share.

Total Nigeria and African Petroleum led the price losers’ chart
with a loss of N8.28 and N2.29, to close at N185.87 and N45.10 per share. RT
Briscoe and Nigerian Breweries followed with a decrease of N1.34 and N1.28 on
their initial prices of N6.50 and N70.81 per share respectively.

Bears across the globe

Stock markets were bearish across the globe on Monday. The
Australian Securities Exchange’ ASX lost 1.36 per cent while the Hong Kong’
Hang Seng was down by 2.10 per cent. Also, the Canadian TSX 60 Index and
Japanese Nikkei 225 recorded 0.52 per cent and 1.74 per cent depreciation,
respectively.

In Europe, the Germany DAX Index lost 0.12 per cent while the
Europe Euronext 100 Index and the France CAC 40 Index lost 0.50 per cent and
0.42 per cent. The Switzerland Market Index also decreased by 1.28 per cent.

The economic impact of the volcanic cloud halting flights across
Europe will increase sharply the longer disruption continues, forcing holiday
cancellations, delaying deliveries and reducing jet fuel demand.

African exporters of flowers and vegetables by air to European
supermarkets, technology companies relying on “just-in-time” deliveries of
components, event organisers and others could all feel the effect.

Economists say so far they have not changed their models or
predictions for European growth, hoping normal service could resume this week.
But in a worst-case scenario in which the ash cloud closes European airspace
for months, one economist estimates lost travel and tourism revenue alone could
knock 1-2 percentage points off regional growth as long as it lasts. European
growth had been predicted at 1-1.5 percent for 2010.

“That would mean a lot of European countries wouldn’t get any
growth this year,” said Vanessa Rossi, senior economic fellow at Chatham House.
“It would literally stifle the recovery. But the problem is it is incredibly
hard to predict what will happen. Even the geologists can’t tell us.”

The event is a classic example of a “Black Swan”, a totally
unexpected event with widespread impact, impossible to predict and hard to
model.

The key questions now are whether the volcano keeps erupting and
spewing ash into the atmosphere, where the wind takes the ash and how long the
ash already in the sky remains over Europe.

Vulcanologists and
meteorologists at a loss

Vulcanologists and meteorologists say they cannot immediately
answer those questions as volcanoes are particularly unpredictable. They warn
the last time the volcano under the Eyjafjallajokull glacier erupted, it lasted
more than a year. But it may not continue to spew ash for the entire eruption.

Most had originally expected the cloud and disruption would
linger over Europe for several days.

Travel and tourism accounts for around five percent of global
gross domestic product — some $3 trillion — with Europe accounting for a
third of that, much of it accruing over the summer months. Not all of this will
be lost, but Rossi estimated a prolonged shutdown could cost up to $5-10 billion
dollars a week in the industry.

But the impact will likely be wider. Most of the world’s goods
by volume may move by sea and land, but transport analysts estimate 40 percent
by value moves by air.

No “just-in-time”

The world’s biggest air freight operators say they are moving
what they can by road and looking at contingency plans of using southern
European airports that are outside the cloud. But they say deliveries will be
sharply affected.

“If your just-in-time operation is depending on parts that come
from Asia or the U.S. or Africa or the Mideast… , you just can’t get it,”
said United Parcel Service Inc spokesman, Norman Black.

“DHL and UPS use airhubs in Germany, Fedex Corp relies on an
airhub in France and all that airspace is closed. There’s just not an option
right at the moment while we all wait and see how long this is going to take.”

Pharmaceutical firms are heavy users of air freight, but most
said on Friday they had enough stocks to avoid a short-term crunch. Last-minute
high-tech imports between Asia and the United States are flown over the Pacific
and will be unaffected, but European firms may feel the pinch.

Most food and beverage deliveries move by sea, but some premium
products such as the finest Scotch whiskeys — retailing at hundreds of dollars
a bottle in China or Japan — can no longer be moved.

That could mean the most vulnerable national economies to the
shutdown could prove to be African producers of fruit and flowers that will
swiftly perish if not shipped to market.

“Kenya, as the largest supplier of cut flowers to Europe, where
tourism is also an important sector, is likely to be the most vulnerable;
followed by the East African soft commodity producers more generally,” said
Standard Chartered chief Africa economist Razia Khan, herself stranded in
Botswana by a cancelled flight.

The International Air Transport Association (IATA) estimates
airlines are losing $200 million a day from the shutdown, which has caused
chaos well beyond the immediate European airspace closed. Most airlines will be
uninsured for this loss, although insurer Munich Re said on Friday it would
consider offering cancellation insurance in future should the crisis produce
demand.

No money for government
support

European airline shares dipped on Friday and will likely fall
sharply if it appears disruption will be prolonged. Even if the wind shifts,
ash clouds over the Atlantic and Arctic would continue to disrupt flights to
North America and Asia.

Analysts estimate the shutdown is reducing demand for jet fuel
by some 2 million barrels a day, last week undermining jet fuel prices. This
could filter into the wider oil price if the shutdown continues.

The wider travel and tourism industry so far has suffered less.
The problem will be if the shutdown lasts long enough to deter future travel.

“Right now the hotels have people who are stranded. If after a
while, no new people arrive, that hurts the hospitality industry,” said Rajeev
Dhawan, director, Economic Forecasting Center at the Robinson College of
Business, Georgia State University.

Even if the initial cloud clears, vulcanologists warn the same
thing could happen again for as long as the eruption under the glacier lasts,
further threatening struggling firms.

“If this had happened a couple of years ago, governments would
have had the money to step in and provide support,” Rossi said. “But right now,
after the crisis, that money isn’t there. This could be enough to push some
weaker airlines and travel companies to the wall. It couldn’t have happened at
a worse time. On the other hand, it could all clear overnight and we could be
back to normal by next week.”

It could be worse. Scientists say this eruption looks unlikely
to impact agriculture outside Iceland itself, in contrast to the much larger
1783 Laki eruption, also on Iceland.

“They were famines in France due to crop failure and this might
well have been a factor in the French Revolution,” said Prof Steve Sparks,
director of the Bristol Environmental Risk Research Centre at Bristol
University.

Toyota Motor Corp has agreed to pay a record $16.4 million fine
to U.S. safety regulators in response to the government’s claim that it
knowingly delayed a massive accelerator pedal recall in January, a government
official said.

The settlement between the U.S. Department of Transportation and
the world’s largest automaker is expected to be signed on Monday in Washington,
the official said.

The Obama administration determined that Toyota knowingly
delayed a recall for a potentially dangerous mechanical glitch that could cause
accelerator pedals on some of its best-selling models, including the Camry, to
become stuck.

By agreeing to pay the $16.4 million fine, Toyota is “accepting
responsibility for hiding this safety defect” from the National Highway Traffic
Safety Administration “in violation of the law,” the senior Transportation
Department official told Reuters.

The official asked not to be named because the settlement with
Toyota had not been finalized.

A Toyota spokesman in Japan said that the automaker had not made
a final determination on how it would respond to the proposed fine from U.S.
officials.

A settlement of the Department of Transportation fine marks the
end of one chapter in a safety crisis that has tarnished Toyota’s reputation
and forced it to compete aggressively on pricing to win back sales in the U.S.
market.

But Toyota still faces over 100 lawsuits alleging consumer fraud
and personal injuries over unintended acceleration in its vehicles.

In addition, U.S. safety regulators are continuing their investigation
of Toyota and have not ruled out further action, the official said.

In a further embarrassment, Toyota has been forced to shut down
production of the Lexus GX 460 SUV over a problem with its electronic control
system and now faces a decision on whether to recall the vehicle.

Shares of Toyota were down almost 2 percent in early afternoon
trade in Tokyo.

Monday marks the end of a two-week period in which Toyota had to
either agree to pay the fine or to file an appeal.

Further liability

Toyota’s decision to pay the fine will not release it from
potential liability in lawsuits over unintended acceleration in Toyota and
Lexus vehicles, the U.S. official said.

Some lawyers estimate Toyota faces potential civil liability of
more than $10 billion in U.S. courts as it struggles to contain an auto-safety
crisis that has tarnished its public image.

The recent addition of demands for full refunds to U.S. owners
of recalled Toyota vehicles as part of consumer protection cases filed in 12
states could raise the legal stakes even higher for the car company, lawyers
say.

On Friday, Toyota’s U.S. representatives said they had confirmed
the results of a Consumer Reports test revealing a handling problem in the
Lexus GX 460.

In addition, the U.S. House Energy and Commerce committee
scheduled a May 6 hearing and asked that Toyota’s U.S. sales chief Jim Lentz to
testify. Lentz appeared before the same panel in February.

Lawmakers are seeking more information about the automaker’s
review of its electronic throttle controls and its work with an outside
consultant to review its related safety systems.

The Nissan Xterra SUV falls as one of the many numerous car
products from Nissan Auto Company. The Nissan Xterra SUV over the years has
showcased impressive off-road performance via its high ground clearance and
ruggedness.

The 2010 Nissan Xterra doesn’t come with any difference from its
predecessors, but instead comes packed with a general upgrade and also
previously optional features found in previous models.

Design

The 2010 Nissan Xterra has got a lovely body structure. It comes
with a heavy and strong outlook with a high ground clearance for easy mobility
on rough surfaces. It features inch steel wheels, rear tinted glasses and roof
rails.

The vehicle is available in different level grades of X, S, Off
Road and SE model. The Xterra X model, which stands as the lowest of all grade,
features elements like step rails, roof rails and 16 inch steel wheels. The
Xterra S model has upgraded tyres of 16-inch alloy wheels, cross bars and roof
gear basket.

The Xterra SE and off-road model is premium type and it offers
features like 17-inch alloy wheels.

Interior

The 2010 Nissan Xterra easily accommodates 5 passengers (driver
inclusive). It provides maximum interior comfort while driving. Features that
are present in the vehicle are power windows and locks, cruise control, tilt
steering wheels. The driver seat is an eight-way power adjustable one.

The SUV comes with air conditioning system that saturates easily
and an Audio CD player with six speakers for surround music sound.

The leather upholstery seats, Bluetooth and navigation interface
is available in both the off-road and SE model. The iPod interface and dockable
rear entertainment console comes optional in the SE model.

Engine Power

The 2010 Nissan Xterra is powered with a strong V6 power engine.
The SUV is built with a 4.0 litre V6 that produces up to 261 horsepower and has
281 pound-feet of torque. It is mated with six speed manual transmission, while
the SE model features a standard five-speed automatic transmission and optional
with other models.

The SUV’s engine is capable of covering a distance of 60mph in 8
seconds.

Safety

The 2010 Nissan Xterra is built with paramount safety in mind.
It is equipped with antilock disc brakes and front seat airbags and side
curtain airbags and with high stability control. It also has a hill descent
control and hill start assist when driving on hilly regions.

Prices vary according to grade models. The X model cost $22,750 (N3, 412,
500). The S model cost $25,720 (N3, 858,000) and Off-road and SE model cost
$29,500 (N4, 425, 000) and $28,650 (N4, 297,500) respectively.

With
the increase in cybercrime in Nigeria, professionals in the Information
and Communication Technology (ICT) sector are emphasising the need for
the government to do more to discourage the crime in order to save the
country’s Internet services. They say the crime affects the reception
of the Internet by Nigerians who mostly view it as a tool for fraud.

Speaking in Lagos
on Friday, Samuel Adeleke, the president of the Internet Service
Providers Association of Nigeria (ISPAN), said that low penetration of
Internet in Nigeria is a major challenge that has affected the
development of the country.

“It is a shame to
say that an average Nigerian is a novice when it comes to the use the
Internet and that is why we condemn the misuse of the Internet because
what most people use it for is to chat, send emails and at best to
download some programmes.

“We are not an
Internet hungry nation; we need to change our attitude in this
direction. There is need for Internet ratification and also the need
for active involvement of Nigeria both in perceptive and as well as
influencing decision makings.”

Cyber fraud

Mr. Adeleke explained that one major factor that affects Internet penetration in Nigeria is cyber crime.

“When we talk of
various aspect of Internet management in and outside Africa, we are
sure to say that Nigeria is not fully actively involved like other
countries such as Ghana or South African in terms of Internet
penetration. There is need to influence public perception of Internet
usage from the bad use. Just a few make good use of it for developing
applications for better life.”

“Our thinking as
Nigerians is that the Internet is only used by a few and those that use
it do it for cyber crime ‘yahoo, yahoo’ rather than trying to find a
way for getting more people to use it for development purposes,” added
Mr. Adeleke.

No policy on Cyber security

Also speaking on
the issue in an email response to NEXT on Sunday, Jimson Olufuye, the
president, Information Technology Association of Nigeria (ITAN) said
the lack of policy to tackle cybercrime is a major problem to the
sector.

“Major issues of
cybercrime are identity theft, hacking, spamming, phishing, sabotage
through cyberstalking etc. In Nigeria non- availability of legislative
frameworks to tackle cybercrime and assure cybersecurity are concerns.

“I do not think the
issue can be easily solved; it’s going to be a part of us just like
normal theft, robbery etc. Now is the time for the federal government
and regulators put in place appropriate legislations on cybersecurity
to mitigate the crime. They need to be involved in public enlightenment
on the issue and emphasize the implications of such ventures,” said Mr.
Olufuye.

Earlier this year,
the International Telecommunication Union (ITU) launched a toolkit for
cybercrime legislation in order to reduce cyber-related crimes globally.

Mr. Olufuye urged Nigeria to associate with the Union in making use of the toolkit to check cybercrime in the country.

“I think that the
Nigerian ICT sector should associate with the ITU body in order to join
force by implementing the use the toolkit to reduce cybercrime. There
is need for professionals to advocate for appropriate policies and
legislation against cybercrimes.

‘Digital amnesty’

Mr. Adeleke, however concluded that there is a need to educate Nigerians to avoid such cybercrimes through digital amnesty.

“There in need for
digital amnesty, this is not say that we can handle cybercrimes, but we
want to be able to educate Nigerians on the use of the Internet because
it involves job creation, youth development, public awareness and
providing an alternative use of the Internet,” said Mr. Adeleke.

The economic impact of the volcanic cloud halting flights across
Europe will increase sharply the longer disruption continues, forcing holiday
cancellations, delaying deliveries and reducing jet fuel demand.

African exporters of flowers and vegetables by air to European
supermarkets, technology companies relying on “just-in-time” deliveries of
components, event organisers and others could all feel the effect.

Economists say so far they have not changed their models or
predictions for European growth, hoping normal service could resume this week.
But in a worst-case scenario in which the ash cloud closes European airspace
for months, one economist estimates lost travel and tourism revenue alone could
knock 1-2 percentage points off regional growth as long as it lasts. European
growth had been predicted at 1-1.5 percent for 2010.

“That would mean a lot of European countries wouldn’t get any
growth this year,” said Vanessa Rossi, senior economic fellow at Chatham House.
“It would literally stifle the recovery. But the problem is it is incredibly
hard to predict what will happen. Even the geologists can’t tell us.”

The event is a classic example of a “Black Swan”, a totally
unexpected event with widespread impact, impossible to predict and hard to
model.

The key questions now are whether the volcano keeps erupting and
spewing ash into the atmosphere, where the wind takes the ash and how long the
ash already in the sky remains over Europe.

Vulcanologists and
meteorologists at a loss

Vulcanologists and meteorologists say they cannot immediately
answer those questions as volcanoes are particularly unpredictable. They warn
the last time the volcano under the Eyjafjallajokull glacier erupted, it lasted
more than a year. But it may not continue to spew ash for the entire eruption.

Most had originally expected the cloud and disruption would
linger over Europe for several days.

Travel and tourism accounts for around five percent of global
gross domestic product — some $3 trillion — with Europe accounting for a
third of that, much of it accruing over the summer months. Not all of this will
be lost, but Rossi estimated a prolonged shutdown could cost up to $5-10 billion
dollars a week in the industry.

But the impact will likely be wider. Most of the world’s goods
by volume may move by sea and land, but transport analysts estimate 40 percent
by value moves by air.

No “just-in-time”

The world’s biggest air freight operators say they are moving
what they can by road and looking at contingency plans of using southern
European airports that are outside the cloud. But they say deliveries will be
sharply affected.

“If your just-in-time operation is depending on parts that come
from Asia or the U.S. or Africa or the Mideast… , you just can’t get it,”
said United Parcel Service Inc spokesman, Norman Black.

“DHL and UPS use airhubs in Germany, Fedex Corp relies on an
airhub in France and all that airspace is closed. There’s just not an option
right at the moment while we all wait and see how long this is going to take.”

Pharmaceutical firms are heavy users of air freight, but most
said on Friday they had enough stocks to avoid a short-term crunch. Last-minute
high-tech imports between Asia and the United States are flown over the Pacific
and will be unaffected, but European firms may feel the pinch.

Most food and beverage deliveries move by sea, but some premium
products such as the finest Scotch whiskeys — retailing at hundreds of dollars
a bottle in China or Japan — can no longer be moved.

That could mean the most vulnerable national economies to the
shutdown could prove to be African producers of fruit and flowers that will
swiftly perish if not shipped to market.

“Kenya, as the largest supplier of cut flowers to Europe, where
tourism is also an important sector, is likely to be the most vulnerable;
followed by the East African soft commodity producers more generally,” said
Standard Chartered chief Africa economist Razia Khan, herself stranded in
Botswana by a cancelled flight.

The International Air Transport Association (IATA) estimates
airlines are losing $200 million a day from the shutdown, which has caused
chaos well beyond the immediate European airspace closed. Most airlines will be
uninsured for this loss, although insurer Munich Re said on Friday it would
consider offering cancellation insurance in future should the crisis produce
demand.

No money for government
support

European airline shares dipped on Friday and will likely fall
sharply if it appears disruption will be prolonged. Even if the wind shifts,
ash clouds over the Atlantic and Arctic would continue to disrupt flights to
North America and Asia.

Analysts estimate the shutdown is reducing demand for jet fuel
by some 2 million barrels a day, last week undermining jet fuel prices. This
could filter into the wider oil price if the shutdown continues.

The wider travel and tourism industry so far has suffered less.
The problem will be if the shutdown lasts long enough to deter future travel.

“Right now the hotels have people who are stranded. If after a
while, no new people arrive, that hurts the hospitality industry,” said Rajeev
Dhawan, director, Economic Forecasting Center at the Robinson College of
Business, Georgia State University.

Even if the initial cloud clears, vulcanologists warn the same
thing could happen again for as long as the eruption under the glacier lasts,
further threatening struggling firms.

“If this had happened a couple of years ago, governments would
have had the money to step in and provide support,” Rossi said. “But right now,
after the crisis, that money isn’t there. This could be enough to push some
weaker airlines and travel companies to the wall. It couldn’t have happened at
a worse time. On the other hand, it could all clear overnight and we could be
back to normal by next week.”

It could be worse. Scientists say this eruption looks unlikely
to impact agriculture outside Iceland itself, in contrast to the much larger
1783 Laki eruption, also on Iceland.

“They were famines in France due to crop failure and this might
well have been a factor in the French Revolution,” said Prof Steve Sparks,
director of the Bristol Environmental Risk Research Centre at Bristol
University.

Toyota Motor Corp has agreed to pay a record $16.4 million fine
to U.S. safety regulators in response to the government’s claim that it
knowingly delayed a massive accelerator pedal recall in January, a government
official said.

The settlement between the U.S. Department of Transportation and
the world’s largest automaker is expected to be signed on Monday in Washington,
the official said.

The Obama administration determined that Toyota knowingly
delayed a recall for a potentially dangerous mechanical glitch that could cause
accelerator pedals on some of its best-selling models, including the Camry, to
become stuck.

By agreeing to pay the $16.4 million fine, Toyota is “accepting
responsibility for hiding this safety defect” from the National Highway Traffic
Safety Administration “in violation of the law,” the senior Transportation
Department official told Reuters.

The official asked not to be named because the settlement with
Toyota had not been finalized.

A Toyota spokesman in Japan said that the automaker had not made
a final determination on how it would respond to the proposed fine from U.S.
officials.

A settlement of the Department of Transportation fine marks the
end of one chapter in a safety crisis that has tarnished Toyota’s reputation
and forced it to compete aggressively on pricing to win back sales in the U.S.
market.

But Toyota still faces over 100 lawsuits alleging consumer fraud
and personal injuries over unintended acceleration in its vehicles.

In addition, U.S. safety regulators are continuing their investigation
of Toyota and have not ruled out further action, the official said.

In a further embarrassment, Toyota has been forced to shut down
production of the Lexus GX 460 SUV over a problem with its electronic control
system and now faces a decision on whether to recall the vehicle.

Shares of Toyota were down almost 2 percent in early afternoon
trade in Tokyo.

Monday marks the end of a two-week period in which Toyota had to
either agree to pay the fine or to file an appeal.

Further liability

Toyota’s decision to pay the fine will not release it from
potential liability in lawsuits over unintended acceleration in Toyota and
Lexus vehicles, the U.S. official said.

Some lawyers estimate Toyota faces potential civil liability of
more than $10 billion in U.S. courts as it struggles to contain an auto-safety
crisis that has tarnished its public image.

The recent addition of demands for full refunds to U.S. owners
of recalled Toyota vehicles as part of consumer protection cases filed in 12
states could raise the legal stakes even higher for the car company, lawyers
say.

On Friday, Toyota’s U.S. representatives said they had confirmed
the results of a Consumer Reports test revealing a handling problem in the
Lexus GX 460.

In addition, the U.S. House Energy and Commerce committee
scheduled a May 6 hearing and asked that Toyota’s U.S. sales chief Jim Lentz to
testify. Lentz appeared before the same panel in February.

Lawmakers are seeking more information about the automaker’s
review of its electronic throttle controls and its work with an outside
consultant to review its related safety systems.

The Nissan Xterra SUV falls as one of the many numerous car
products from Nissan Auto Company. The Nissan Xterra SUV over the years has
showcased impressive off-road performance via its high ground clearance and
ruggedness.

The 2010 Nissan Xterra doesn’t come with any difference from its
predecessors, but instead comes packed with a general upgrade and also
previously optional features found in previous models.

Design

The 2010 Nissan Xterra has got a lovely body structure. It comes
with a heavy and strong outlook with a high ground clearance for easy mobility
on rough surfaces. It features inch steel wheels, rear tinted glasses and roof
rails.

The vehicle is available in different level grades of X, S, Off
Road and SE model. The Xterra X model, which stands as the lowest of all grade,
features elements like step rails, roof rails and 16 inch steel wheels. The
Xterra S model has upgraded tyres of 16-inch alloy wheels, cross bars and roof
gear basket.

The Xterra SE and off-road model is premium type and it offers
features like 17-inch alloy wheels.

Interior

The 2010 Nissan Xterra easily accommodates 5 passengers (driver
inclusive). It provides maximum interior comfort while driving. Features that
are present in the vehicle are power windows and locks, cruise control, tilt
steering wheels. The driver seat is an eight-way power adjustable one.

The SUV comes with air conditioning system that saturates easily
and an Audio CD player with six speakers for surround music sound.

The leather upholstery seats, Bluetooth and navigation interface
is available in both the off-road and SE model. The iPod interface and dockable
rear entertainment console comes optional in the SE model.

Engine Power

The 2010 Nissan Xterra is powered with a strong V6 power engine.
The SUV is built with a 4.0 litre V6 that produces up to 261 horsepower and has
281 pound-feet of torque. It is mated with six speed manual transmission, while
the SE model features a standard five-speed automatic transmission and optional
with other models.

The SUV’s engine is capable of covering a distance of 60mph in 8
seconds.

Safety

The 2010 Nissan Xterra is built with paramount safety in mind.
It is equipped with antilock disc brakes and front seat airbags and side
curtain airbags and with high stability control. It also has a hill descent
control and hill start assist when driving on hilly regions.

Prices vary according to grade models. The X model cost $22,750 (N3, 412,
500). The S model cost $25,720 (N3, 858,000) and Off-road and SE model cost
$29,500 (N4, 425, 000) and $28,650 (N4, 297,500) respectively.