Car-based SUVs such as the Lexus RX use independent rear suspension to provide the ride and handling customers expect, but independent suspensions don't carry heavy loads as well. So GMC has given the Yukon a live rear axle mounted on coil springs and located by five control links, an arrangement which provides a good compromise between ride/handling and cargo-carrying utility. Yukon's front suspension is conventional in design, but uses torsion bars instead of coil springs to save space. Its conventional ladder frame is fully boxed in the mid-section for maximum rigidity, while the front and rear portions are shaped by the same hydroforming technique used to make Corvette frames. This rigid design is a key to the Yukon's excellent ride and handling. At the very front of the frame is a section designed to crush and absorb impacts in a crash.

Denali's AutoRide computer-controlled suspension helps keep it level over bumps. This effect is especially pronounced when towing; a trailer tends to cause the towing vehicle to rock back and forth when driving over bumps, but the AutoRide system keeps the Denali amazingly smooth.

The steering on all Yukons provides good control and feedback. It's a recirculating-ball system, however, which doesn't offer the response of the rack-and-pinion steering found on the Ford Explorer and Expedition.

A tighter 38.3-foot turning diameter makes the Yukon much easier to park than a Yukon XL, which takes another 4.7 feet of space to turn around (unless it has Quadrasteer). That makes a huge difference in the grocery store parking lot. The current Yukon's turning diameter represents a big improvement over previous-generation Yukon and Tahoe models.

The brakes perform well. Improvements to the system for 2003 have reduced pedal effort while improving feedback. A dynamic proportioning system continuously balances the front and rear brakes for maximum braking without activating the ABS. To check this out, we towed a heavily laden horse trailer without trailer brakes connected and were impressed with the Yukon's braking ability.

Under the hood, the Yukons employ the latest version of Chevy's small-block V8 engine family. These Generation III overhead-valve engines are the best yet and rival competitors' overhead-cam engines for smoothness and efficiency. As mentioned, they come in three sizes: 4.8-liter, 5.3-liter, and 6.0-liter.

The popular 5.3-liter V8 is rated at 285 horsepower and its acceleration is impressive. Like the 4.8-liter engine, the 5.3-liter burns regular unleaded fuel, but at the same 14/18 mpg rate as the big 6.0.

The 4.8-liter V8 is rated at 275 horsepower and gets better fuel economy, earning 15/20 mpg on the EPA's city/highway test in a 2WD Yukon.

The big 6.0-liter V8 that comes with the Denali cranks out 320 horsepower. Fuel economy is improved for 2003, up from last year's 12/16 mpg city/highway to a more reasonable EPA mileage rating of 14/18. The 6.0-liter V8 burns regular unleaded fuel, making pit stops a little more affordable.

Standard Yukons come with a choice of two-wheel drive or a traditional, part-time four-wheel-drive system. On two-wheel-drive models, an optional limited-slip rear differential provides better traction in slippery conditions. A second-gear winter start feature in the automatic transmission helps get the vehicle rolling without wheel spin on snow or ice.

Optional StabiliTrak electronic stability control ($750) offers greater safety on uncertain surfaces. StabiliTrak measures where the driver is steering against where the truck is actually heading and, when necessary, reduces engine torque or selectively applies one or more brakes to correct the Yukon's path. StabiliTrak's traction-control function, combined with the limited-slip differential, help make the 4x2 Yukon sufficient for many people.

However, it's a shame to pass on the four-wheel-drive system, especially where winter brings snow. Press the 4HI button when standard four-wheel drive is needed for driving off road or on roads covered with snow and ice. The 4LO setting is used for creeping through deep sand, deep mud, deep snow or up or down steep grades. If conditions are fluctuating, hit the Auto 4WD button and the Autotrac all-wheel-drive system automatically transfers power from a slipping wheel to the wheels with the best traction; no input is needed from the driver. The Auto 4WD mode has been refined for 2003, providing improved road feel in low-speed turns. It works well in pouring rain, on snow, ice, or gravel roads.

Yukon Denali comes with full-time all-wheel-drive, and it has also been revised for 2003. To improve fuel efficiency, last year's viscous-coupling transfer case has been replaced by a single-speed open-differential-type case. At the same time, the front/rear torque split has been adjusted slightly, from 38/62 to 40/60. GMC claims better yaw stability with the new setup. StabiliTrak is standard on Denali, and combined with Denali's full-time four-wheel drive helps maintain good traction in changing conditions. It's a good system for snow, ice, heavy rain, dirt, and gravel.

Denali's luxury touches don't overlook the fact that Yukon drivers still want to tow their boat to the lake or pull their horse trailer to the show, so it is loaded with features for towing and moving cargo. The bigger engine will help pull heavy loads, while the all-wheel-drive system is just the ticket for yanking a boat up a slippery landing. Denalis use a heavy-duty version of GM's four-speed automatic transmission made with hardened parts to withstand the extra power of the 6.0-liter engine. For drivers' peace of mind while towing, the Denali features a transmission temperature gauge, so you can be confident that you are not cooking the transmission while pulling a trailer up a hill.

All Yukons come equipped to accept a lighting plug for trailer towing, and have provisions for easily connecting a trailer brake controller.