When it goes on sale in the waning months of 2007, the GMC Yukon hybrid will be the first two-mode hybrid SUV on the market. Using a system developed by GM with BMW and DaimlerChrysler, the GMC Yukon Hybrid will offer fuel savings of nearly 25% over a standard gasoline model.This hybrid system operates in two modes, one for driving through cities and traffic, and one for highway speeds. In city mode, the vehicle will shut off the gasoline engine for extended periods of time, using only electric power to move at low speeds. In highway mode, the vehicle's computer uses engine features like Active Fuel Management to maximize efficiency in addition to using the electric motors to power the vehicle along. The system saves the full power of the gasoline engine for when its needed, such as accelerating or towing.Like the regular Yukon, the Yukon Hybrid is powered by a 6-liter V8 engine. It also features a slightly redesigned hood, front and rear fascias, and a new grille that help offset the extra weight added to the vehicle by the hybrid system. GM says that the hybrid system will not compromise the full-size SUVs towing and hauling capabilities.

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