The Yukon is a truck. It comes with 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. Its front suspension is conventional in design, but uses torsion bars instead of coil springs to save space. Yukon's 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.

Yukon Denali's AutoRide computer-controlled suspension helps keep it level over bumps. This benefit 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 combination of good visibility and confident handling give the Yukon an air of nimbleness. 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. Its relatively tight 38.3-foot turning diameter makes the Yukon much easier to park than a standard Yukon XL, which takes another 4.7 feet of space to turn around. 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. A dynamic proportioning system continuously balances the front and rear brakes for maximum effectiveness 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. All 2004 Yukons now come with Hydroboost brakes, which rely on hydraulic pressure rather than engine vacuum to reduce braking pressure. This upgraded system provides more power for high-deceleration stops, and improves ABS performance. Hyrdoboost brakes also require less pedal force during high-deceleration stops and improve pedal effort and feel during normal operation.

Under the hood, Yukons employ the latest heirs to Chevy's small-block V8 engine family. These Generation-3 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. All burn regular unleaded.

The popular 5.3-liter V8 offers impressive acceleration performance. Called the 5300 Vortec, it's rated at 295 horsepower and 330 pounds-feet of torque. It earns an EPA City/Highway rating of 14/19 mpg with 2WD, 14/18 mpg with 4WD. The 4.8-liter V8 develops 285 horsepower but considerably less torque: 295 pounds-feet. And it uses just as much fuel, in the EPA tests at least. The big 6.0-liter V8 that comes with the Denali cranks out 325 horsepower and rates about the same fuel economy as the standard 4WD Yukons.

Two-wheel-drive Yukons come standard with electronic traction control. The optional limited-slip rear differential improves traction in slippery conditions. Using the winter start feature on the automatic transmission helps get the Yukon rolling without wheel spin on snow or ice by starting it off in second gear.

Four-wheel-drive Yukons feature a traditional part-time 4WD system.

StabiliTrak offers greater safety on uncertain surfaces. StabiliTrak, which is what GM calls its electronic stability control system, comes standard on Denali but is also available on 2WD ($305) and 4WD ($500) Yukons. This electronic stability control system measures where the driver is steering against where the truck is actually heading and, when necessary, reduces engine torque or selectively applies the brakes to one or more wheels to correct the Yukon's path. In short, StabiliTrak can help keep you from going off the road if you remember to steer where you want to go. StabiliTrak, traction control, and a limited-slip differential greatly improve the capability of 2WD models in slippery conditions.

It seems a shame to pass on the four-wheel-drive system, however, 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. You may never need the 4LO setting, which is invaluable when creeping through deep sand, deep mud, deep snow, or up and down steep grades.

More typical are those wintry days when conditions are fluctuating and the roads are a mixture of ice, snow and wet pavement. When this happens, 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. The Auto 4WD mode was refined last year, providing improved road feel in low-speed turns. This all-wheel-drive system works well in pouring rain, on snow, ice, or gravel roads.

Yukon Denali comes with full-time all-wheel-drive. Revised for 2003, it uses an open center differential with a front/rear torque split of 40/60 for better yaw stability. 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.

All Yukons come equipped to accept a lighting plug for trailer towing, and have provisions for easily connecting a trailer brake controller. The Tow/Haul mode works better when towing in hilly terrain.

The Denali works well for towing. The bigger engine helps pull trailers up long grades, while the all-wheel-drive system is just the ticket for pulling a boat trailer up a slippery boat ramp. 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. Denali's heavy-duty automatic transmission is made with hardened parts to withstand the extra power of the 6.0-liter engine.