DETROIT -- General Motors said on Wednesday it will build Chevrolet Tahoe and GMC Yukon hybrid sport-utility vehicles at its Arlington, Texas, plant in late 2007.

The hybrid system is being advanced and adapted by BMW, DaimlerChrysler AG and GM for use in cars, trucks and SUVs.

GM, the world's largest automaker, also said it will produce the world's first light-duty integrated hybrid transmission, to be designed and built at its Baltimore, Maryland, transmission plant.

Chevrolet Tahoe LTZ

Highs: Elegant interior and exterior design, improved build quality, impressive solidity, refined ride, improved steering, quiet at speed.

Lows: Still weighs nearly three tons, dimwitted four-speed automatic, lacks adequate third-row space, poor fuel economy.

The Verdict: This Tahoe's goodness should be incentive enough to make it successful.

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General Motors couldn’t have picked a more disagreeable time to launch its new line of large SUVs. Although gas prices are retreating in the wake of the Hurricane Katrina disaster, the sting of $3 gas is still much on the minds of would-be buyers. Meanwhile, GM stock has been nose-diving as rumors of bankruptcy have fostered little cracks in the fragile corporate façade. And so it is that the 2007 SUVs—the Chevrolet Tahoe, the GMC Yukon, the Cadillac Escalade—are seemingly born under a bad sign, but the good news is that the 2007 Chevrolet Tahoe LTZ we drove is good enough to steal sales away from the competition and, equally important, will likely sell without the incentive coercion that was necessary to move the previous generation throughout much of its life.

Although the previous-gen Tahoe won a comparison test early in its life cycle (“Living Large,” August 2002), its later years proved to be less fruitful. The last time we compared the Tahoe with its competition, it placed fourth in a field of five (“Gitche Gumee Games,” April 2004). To recapture the class lead, nearly every aspect of Chevy’s full-size sport-ute has been redesigned or altered.



Perhaps the most radical difference between the old and new can be seen inside the new SUV. Interiors have never been a GM truck strength—the previous Tahoe was criticized for having a cheap, dated dashboard. That old dash is gone, replaced by a modern-looking unit that would have been swell enough for the Cadillac version of the platform, but here it sits inside the least expensive of GM’s big utes. The plastics that make up much of the interior are happily of the low-gloss variety and benefit from a graining pattern that wouldn’t look out of place in a BMW. A firm press of one’s index finger against the plastics does reveal, however, that they are of the less expensive and hard variety. The platform is known as GMT 900, and the other tenants, the GMC Yukon and the Cadillac Escalade, get the handsome graining and plastic into which your digits will sink slightly.

If you resist fingering the plastics, the interior should suit you fine. Build quality is excellent, gaps between parts have shrunk to just about nothing, and the Tahoe we drove was squeak- and rattle-free. Our top-of-the-line LTZ truck came with seats that have the feel and look of fine leather goods; the leather in the Tahoe last time around was difficult to distinguish from vinyl. The new seats are firm, you sit on top of them, and they lack bolstering, which works against holding you in place during the occasional cornering maneuver, but it does make sliding in and out easy. The high seating position and commanding view of the road remain, but the dash sits lower, and that gives the illusion of an even greater throne height.

Although the interior décor has changed for the better, passengers have about the same amount of space as they did in the last Tahoe. A third row of seats is optional, and you can get second-row captain’s chairs instead of a 60/40 bench. Second-row seats fold forward easily; power-actuated folding is optional and allows for access to the third row, which is strictly for the SpongeBob set. Equally diminutive is the amount of cargo space behind that third row, a problem solved by abandoning the seating and folding the third row forward. Or you can remove the row, although each section of the two-piece bench weighs 65 pounds—cough twice, please. If you’re one of those demanding souls who want a third row and cargo space, Chevy will be delighted to sell you a Suburban.

A new body, more chiseled and aggressive-looking, houses the upgraded interior. There’s little chrome in evidence, and the styling, although clearly an evolution, benefits from tight panel gaps and elegant headlights and taillights. The expensive look isn’t just skin-deep, as the Tahoe rides on a new frame and chassis. The frame, said to be 50 percent stiffer, bolts to the body and contributes to the solid, unflappable feel the truck now enjoys. For those who tow, a four-wheel-drive model can lug around 7700 pounds.

A redesigned front suspension with coil springs replaces the old torsion-bar setup and increases the front track by three inches. In back, there’s a solid axle located by five links—an evolution of the design in the previous Tahoe. Even on the optional 20-inch wheels of our tester, the chassis never jarred or shuddered. Suspension tuning is firmer than the plushness of past Tahoes, but body movement is kept in check and the chassis feels more secure and buttoned down than before. If things get too wet and wild, all of GM’s large SUVs now come standard with stability control and roll-over mitigation.

Keeping a Tahoe within a highway lane is no longer a full-time job because the new rack-and-pinion steering actually offers on-center feel—a Tahoe first. We’d still like a bit more on-center resistance at highway speeds, as the steering becomes fairly light with speed. The new rack replaces a recirculating-ball setup that had enough lost motion to allow one to mimic the wacky driving in old movies, where going straight required constant sawing of the wheel. Brake-pedal feel has undergone a similar transformation. The stepping-into-a-cowpie feel is replaced by a firm pedal that doesn’t waste any of its travel. We were surprised by the lengthy 201 feet it took to stop from 70 mph because the brakes feel more reassuring and secure than that distance indicates. The front and rear rotors are an inch larger, and the front calipers are of a new design, but the SUV required two more feet than the 199-foot distance we experienced in the Tahoe we tested in ’04.

Although nearly every part of the old Tahoe was kicked to the curb, the powertrain escaped largely intact. A few modifications boost the power and fuel economy of the venerable small-block. The 5.3-liter V-8 of the LTZ (a 290-hp, 4.8-liter V-8 is standard on lower trim levels) makes 25 more horses and five more pound-feet of torque than the 2006 model. To better fuel economy, the engine now boasts cylinder deactivation that allows the V-8 to operate as a four-cylinder in situations where you don’t need all eight—generally, when cruising. The switch from V-8 to V-4 is subtle and nearly transparent; if you look for it, you’ll notice a slight change in engine note and a slight vibration that can be felt through the accelerator pedal. The easiest way of keeping track of how many cylinders are in use is the instantaneous-fuel-economy display that tells you if you’re in V-8 or V-4 mode.

The bad news is that despite GM’s claim that its new SUV has the best fuel economy in the big-ute segment, our Tahoe burned a gallon of regular every 12 miles. Although final EPA figures weren’t available, Chevrolet estimates 16 mpg in the city and 22 on the highway. One obvious culprit for our poor fuel economy is our staff’s desire to emulate drag racer Don “The Snake” Prudhomme. A less obvious culprit is the optional remote start that allows the key-fob possessor to start the engine from a distance. It’s a valuable feature against bitter weather—the car can be warmed in the driveway while you’re waiting for that Pop-Tart to cool off—but using it means you’re burning fuel and not going anywhere. We used it, a lot.

Despite our best efforts, we didn’t win too many drag races. Our LTZ tester boasts more power than the previous truck, but it also weighs 5840 pounds (40 more than the Tahoe Z71 we tested in 2004). Accelerating from 0 to 60 mph takes 8.5 seconds, compared with 8.9 seconds in the old truck. A four-speed automatic is the only transmission (Escalades and Yukon Denalis get a new six-speed automatic), and it is perhaps the weakest link in an otherwise impressive sport-ute. GM hedged by saying our Tahoe lacked the final transmission calibration, which may explain why our tester often refused to downshift at speed, leaving the engine flat-footed. We’d like to see the six-speed offered in the Tahoe, and soon.

Once under way, the Tahoe proved to be a luxurious and quiet vessel. At a 70-mph cruise, only 68 decibels of noise made it inside. A small amount of wind rush around the A-pillars stood out because the rest of the truck was so quiet. Large exterior mirrors made lane changing easy in the Tahoe, and turn signals that click three times before the detent encouraged good road manners. We’d welcome that feature on every vehicle.

Everything we didn’t like about the previous Tahoe has been addressed in the ’07 model. It’s an impressive vehicle that needn’t make any apologies; as such it joins the Corvette, the Pontiac Solstice, and the Cadillac SRX as the GM vehicles we’d most like to see on our car board. The full-size-SUV segment isn’t expected to grow over the next few years, but GM is betting its new truck platform will dominate it. GM wasn’t ready to reveal what the new Tahoe costs, so we’re left to guess that the range will span from $35,000 to nearly 50 grand for our fully loaded LTZ. At these prices, the Tahoe’s excellence should allow for GM to move the metal without having to bribe buyers with a briefcase full of money on the passenger’s seat.

2007 CHEVROLET TAHOE LTZ
Vehicle type: front-engine, rear-/4-wheel-drive, 7-passenger, 5-door wagon

Estimated price as tested: $50,000 (estimated base price: $35,000)

Options on test car: navigation system, power sunroof, rearview camera, XM satellite radio, curtain airbags, DVD entertainment system, power-folding second-row captain’s chairs, third-row seats, heated leather seats, rain-sensing windshield wipers, remote start, power-adjustable pedals, 20-inch cast aluminum wheels

Major standard accessories: power windows and locks, remote locking, A/C, cruise control, tilting steering wheel, rear defroster and wiper

Sound system: Bose AM-FM-satellite radio/CD changer/DVD player, 9 speakers

ENGINE
Type: V-8, iron block and aluminum heads
Bore x stroke: 3.78 x 3.62 in, 96.0 x 92.0mm
Displacement: 325 cu in, 5327cc
Compression ratio: 9.9:1
Fuel-delivery system: port injection
Valve gear: pushrods, 2-valves per cylinder, hydraulic lifters
Power (SAE net): 320 bhp @ 5300 rpm
Torque (SAE net): 340 lb-ft @ 4200 rpm
Redline: 5500 rpm

DRIVETRAIN
Transmission: 4-speed automatic
Final-drive ratio: 3.42:1, limited slip
4-wheel-drive system: part-time 2-speed with automatic front-axle engagement, automatically locking center differential, open front differential, and automatically locking rear differential; brake-based traction control
Transfer-gear ratios (low/high): 2.72:1/1.00:1
Gear, Ratio, Mph/1000 rpm (L/H), Max test speed (L/H)
I, 3.06, 3.2/8.8, 18/48 mph (5500/5500 rpm)
II, 1.63, 6.1/16.5, 33/91 mph (5500/5500 rpm)
III, 1.00, 9.9/26.9, 54/112 mph (5500/4200 rpm)
IV, 0.70, 14.1/38.4, 78/112 mph (5500/2900 rpm)

DIMENSIONS
Wheelbase: 116.0 in
Track, front/rear: 68.2/67.0 in
Length/width/height: 202.0/79.0/77.0 in
Ground clearance: 9.0 in
Drag area, Cd (0.36) x frontal area (37.3 sq ft): 13.4 sq ft
Curb weight: 5840 lb
Weight distribution, F/R: 51.3/48.7%
Curb weight per horsepower: 18.3 lb
Fuel capacity: 26.0 gal

CHASSIS/BODY
Type: full-length frame
Body material: welded steel stampings

INTERIOR
SAE volume, front seat: 63 cu ft
middle seat: 57 cu ft
rear seat: 33 cu ft
cargo, seats up/down: 17/109 cu ft

Practical cargo room, length of pipe: 143.0 in
largest sheet of plywood, l x w: 67.3 x 48.3 in
no. of 10 x 10 x 16-in boxes, seats in/out: 7/62
Front-seat adjustments: fore-and-aft, seatback angle, front height, rear height, lumbar support
Restraint systems, front: manual 3-point belts, driver and passenger front and curtain airbags
rear: manual 3-point belts, curtain airbags

SUSPENSION
Front: ind, unequal-length control arms, coil springs, automatically leveling shock absorbers, anti-roll bar
Rear: rigid axle located by 2 trailing links and a Panhard rod, coil springs, automatically leveling shock absorbers, anti-roll bar

STEERING
Type: rack-and-pinion with hydraulic power assist
Steering ratio: 17.8:1
Turns lock-to-lock: 3.3
Turning circle curb-to-curb: 39.0 ft

BRAKES
Type: hydraulic with vacuum power assist and anti-lock control
Front: 13.0 x 1.2-in vented disc
Rear: 13.6 x 0.8-in vented disc

WHEELS AND TIRES
Wheel size/type: 8.5 x 20 in/cast aluminum
Tires: Bridgestone Dueler H/L Alenza M+S, P275/55R-20 111S
Test inflation pressures, F/R: 32/32 psi
Spare: full size on steel wheel

C/D TEST RESULTS
ACCELERATION: Seconds
Zero to 30 mph: 3.0
40 mph: 4.3
50 mph: 6.4
60 mph: 8.5
70 mph: 10.9
80 mph: 14.7
90 mph: 19.5
100 mph: 25.0
110 mph: 32.4
Street start, 5–60 mph: 8.8
Top-gear acceleration, 30–50 mph: 4.9
50–70 mph: 5.3
Standing 1/4-mile: 16.5 sec @ 84 mph
Top speed (governor limited): 112 mph

BRAKING
70–0 mph @ impending lockup: 201 ft

HANDLING
Roadholding, 300-ft-dia skidpad: 0.72 g
Understeer minimal moderate excessive

PROJECTED FUEL ECONOMY (mfr’s est)
EPA city driving: 16 mpg
EPA highway driving: 22 mpg
C/D-observed: 12 mpg

INTERIOR SOUND LEVEL
Idle: 41 dBA
Full-throttle acceleration: 74 dBA
70-mph cruising: 68 dBA

The 2007 Chevy Tahoe Street Tuner demonstrates what can be done with carefully selected Chevrolet Accessories that transform a vehicle into a contemporary, custom-look street machine. It features 22-inch wheels that accentuate the custom paint work and ground effects, which include new front and rear fascias and rocker panels. The interior features a host of Chevrolet Accessories, including a carbon fiber trim kit, premium carpet floor mats, second-row console, headrest-mounted DVD screens and a ceiling-mounted portable overhead DVD system with a 10-inch screen. The Tahoe Street Tuner also has been lowered and fitted with a Chevy Accessories cat-back exhaust system, which adds an aural punch to the Street Tuner's visual appeal. Most of the upgrades are available now from Chevy Accessories, with others coming soon or still in the concept stage.

Vehicle highlights

5.3L Vortec V-8 engine and Hydra-Matic 4L60 transmission
Custom paint

DETROIT — Facing a prolonged downturn in sales of full-size trucks and SUVs and the likelihood of a permanent erosion in their volume and market share, General Motors executives last May canceled the CXX program — the planned replacements for the Chevrolet Tahoe and Suburban and their siblings at GMC and Cadillac.

A story in Sunday's New York Times quotes GM vice chairman Robert Lutz, head of product development, as saying: "It would have been very difficult in today's environment to spend a couple of billion dollars to do a replacement."

The next-generation Tahoe and Suburban, along with successors to the Yukon and Escalade, were slated to begin arriving in 2011 as 2012 models, supplier sources told Inside Line. GM originally had earmarked $2 billion to completely redesign the big SUVs and retool its assembly plants to build them.

It is now unclear whether the current models, which went on sale in early 2006, will continue in production until 2011 or will be phased out earlier. GM has announced plans to close one SUV plant in Janesville, Wisconsin, consolidating SUV production in Arlington, Texas.

Through the first nine months of 2008, Tahoe sales were down 30 percent.

GM earlier this month said it would kill the mid-size Chevrolet TrailBlazer, GMC Envoy and Saab 9-7X in December because of plunging sales.

GM is not alone among the Detroit-based automakers facing a sea change in buyers' vehicle preferences. Chrysler last week said it would discontinue its full-size Aspen and Durango SUVs at year-end, including just-released hybrid editions.