GMC Yukon Hybrid

In May, GMC showed off a Tahoe hybrid for some reporters - which will be very similar to the Yukon hybrid in terms of the hybrid powertrain - so the vehicle is near production. Nonetheless, according to GM at that time, the company's dual mode hybrid Yukon is still in "development stages".

GM's two-mode hybrid technology will place electric motors mounted inside the transmission to assist a 300-horsepower V-8. So, the hybrid Yukon should have the power most large SUV consumers need.

Another benefit of GMC dual mode powertrain will offer the hybrid Yukon the ability to lock the electric motors out of the drive train when extreme engine power is needed, such as when towing. This capability will enable the GMC Yukon hybrid to tow up to 6,000 pounds - something Toyota hybrids cannot do at this point in time.

In terms of the dual mode hybrid drive, essentially, one drive mode will assist with slow, city driving, the other with highway driving. This helps GM hybrids achieve optimal fuel efficiency based upon driving conditions and could make GM's hybrids superior to Toyota's single-mode hybrids in some driving conditions, particularly highway driving.

In addition, the GMC Yukon Hybrid will be 300 pounds lighter due to the use of aluminum in the hood and front tailgates - another tool to increase fuel economy.

Overall, the two-mode hybrid system should make the GMC Yukon 25% more fuel efficient in combined city/highway driving. There is no final word on pricing for the 2008 Yukon hybrid, but early reports indicate it will probably resemble the way that Lexus prices the RX400h versus the standard RX - a difference of some $10,000.