General Motors has a problem. Its recent launch of redesigned large SUVs comes at what some consider an inopportune time.

The 2007 Cadillac Escalade, Chevrolet Tahoe, and GMC Yukon are entering a market that's shrinking. Some industry analysts predict sales will drop to less than 700,000 annually from more than one million at the end of the last decade. That's bad news, considering large SUVs are typically an automaker's most profitable vehicles.

Whatever direction the market is taking, GM knows its '07 lineup has to be good. Well, not just good, but great. It has to not only maintain the company's 60 percent share of the large SUV segment, but also gain additional ground in the face of strong competition from domestic- and Japanese-branded rivals.

2007 GMC Yukon Denali
Previous generation GMC Yukon Denali
Top: The redesigned 2007 GMC Yukon Denali. Bottom: The previous-generation GMC Yukon Denali.

What's in a GMC?
GMC is a division of General Motors that focuses on trucks and SUVs. They're branded as a premium alternative to the more-mainstream Chevrolet nameplate. It's easy to question GMC's relevance in GM's portfolio, since Chevy's trucks outsell GMC more than two to one, and many of the products overlap.

GM will say there's plenty of reason for GMC to be there, as most trucks are sold in the same dealerships as Pontiacs and Buicks. Neither of those two GM brands offers a large SUV or pickup truck.

On the large-SUV front, Yukon has the advantage of offering some model and powertrain options its Tahoe cousin doesn't. But let's start by looking at some of the basic similarities.

Same Name, New Platform
Yukon, Tahoe, and Escalade all ride on a new GM platform the company calls GMT-900. These large SUVs are the first to use it. The larger Escalade ESV, Chevy Suburban, and Yukon XL will get it later in calendar 2006, along with the Escalade EXT and Chevy Avalanche pickups.

GM says this large-SUV platform is stiffer and allows for complete revisions of the suspension and steering systems. Like the Cadillac and Chevy, Yukon has a coil-over-shock front suspension design and rack-and-pinion steering. The rear suspension remains a solid axle on coil springs, which is better for hauling. Available is GM's Autoride suspension that uses sensors to adjust suspension firmness based on road conditions. These additions are designed to make it smoother riding and easier to maneuver, addressing common criticisms of vehicles in this class.

All these large SUVs have the expected safety features. ABS is standard across the board, as is GM's Stabilitrak antiskid system with rollover sensors. OnStar assistance is also included. Dual front airbags are standard. Curtain side airbags with rollover deployment are available. So is a rearview camera integrated into the optional navigation system.

2007 GMC Yukon 2007 GMC Yukon
2007 Chevrolet Tahoe 2007 Chevrolet Tahoe
2007 Cadillac Escalade 2007 Cadillac Escalade
The redesgined 2007 GMC Yukon (top), Chevrolet Tahoe (middle), and Cadillac Escalade (bottom) all ride on the same new platform. Click to enlarge.

Power to the Pavement
Yukon and Tahoe use GM's tried-and-true 5.3-liter V8 engine. In '07 guise, it makes 320 horsepower (vs. 2000-2006's 295 hp) and teams with a 4-speed automatic transmission. While not the most technologically advanced powertrain, GM claims it is still among the smoothest and most refined among large SUVs, and with GM's Active Fuel Management, among the most fuel efficient. GM's Active Fuel Management system shuts off four cylinders while cruising to provide, GM claims, up to a 7 percent increase in fuel economy.

A no-charge option is a 5.3-liter V8 that can run on E85 Ethanol fuel. Ethanol is a blend of 15 percent gasoline and 85 percent Ethanol alcohol. The alcohol is refined from corn and other grains. E85 fuel is available in most states and typically costs less than regular gasoline. Capable models are distinguished by a special "Flexfuel" badge on the tailgate and yellow gas cap.

With either engine, you get a choice of rear- or 4-wheel drive. The latter is GM's Autotrac that has a low-range gear for off-roading. Unlike many conventional 4-wheel-drive systems, Autotrac can be left engaged on dry pavement.

Yukon distances itself from its Chevy cousin by offering a more luxurious Denali model. In addition to unique styling cues, it has an all-new 6.2-liter V8 engine that produces 380 horsepower, second most in the class behind the '07 Escalade. Denalis also get a 6-speed automatic transmission as well as all-wheel drive without a low-range gear.

For those who need to tow boats, trailers, or anything else, Yukon's maximum capacity is 7700 lb. Both the 4- and 6-speed transmissions have a special tow/haul button on the shift lever designed to optimize gear ratios while trailering.

2007 GMC Yukon Denali interior
2007 GMC Yukon interior
Top: 2007 GMC Yukon Denali interior. Bottom: 2007 GMC Yukon interior.

It's What's Inside that Counts
GMC says they invested a lot of research into improving interior materials quality and assembly, something that's often been a sore spot on many GM vehicles. A switch to low-gloss plastics and additional sound insulation promises a more inviting cabin for up to nine passengers.

While there are more creature comforts for those up front, rear passengers aren't neglected either. A power fold-and-tumble second row that's standard on Denali and optional on other Yukons is designed to provide easier access to the third row. All models can be equipped with rear DVD entertainment and separate climate controls for all seating rows.

Denali further ups the ante by offering a heated wood and leather steering wheel, heated second-row seats, real brushed aluminum trim, a power rear liftgate, and Bose-brand audio system with satellite radio.

The 3rd row also folds, but it sits on top of the cargo floor. GM designed the seats to be folded and removed with one hand. Flip and fold the second row, and you wind up with nearly 110 cu-ft of cargo capacity.

There's also more room to store small stuff inside Yukon's cabin. The center console's volume is 20 liters, the glovebox's is five--a 25 percent increase over previous models.

GM's Big Gamble
GM is betting big that these large SUVs will be the cornerstone to reverse its 2005 losses of $8 billion. By investing more dollars into these vehicles' developments, the company is the first to bring such redesigned vehicles to market. Crosstown rival Ford won't have their revamped 2007 Expedition ready until this fall.

But it's not about who brings their products to market first. What's important is whether or not consumers will accept vehicles like the Yukon during a time when preferences are shifting away from these types of vehicles. Only time will tell.

Specifications Comparison


Cadillac Escalade Chevrolet Tahoe GMC Yukon
Wheelbase, in. 116.0 116.0 116.0
Overall Length, in. 202.5 202.0 202.0
Overall Width, in. 79.0 79.0 79.0
Overall Height, in. 74.3 77.0 77.0
Base Curb Weight, lb. 5818 5537 5537
Cargo Volume, cu. ft. 108.9 108.9 108.9
Fuel Capacity, gals. 26.0 26.0 26.0
Seating Capacity 8.0 9.0 9.0
Front Head Room, in. 40.8 40.3 41.1
Max. Front Leg Room, in. 41.3 41.3 44.7
Rear Head Room, in. 38.5 38.5 39.2
Max. Rear Leg Room, in. 39.0 39.0 39.0
Base Price Range $53,850-
$56,405
$33,115-
$45,940
$33,815-
$47,115