The GMT900 Avalanche was introduced at the Chicago Auto Show in February of 2006. Production of the redesigned Avalanche begins at Silao Assembly in March

General Motors replaced the Tahoe and Yukon on the new GMT900 platform in late 2005 as a 2007 model. A hybrid version of the Tahoe, which uses the shared GM/DaimlerChrysler Advanced Hybrid System 2, is expected to follow shortly.

For 2007 the GMC Yukon and Chevrolet Tahoe received different front facias and hood. The GMC Yukon features a monolithic grille and headlights, while the Chevrolet Tahoe's grille is divided by a body colored bar similar to the chrome bar found on most of today's Tahoe's. While the Tahoe's hood now features a design attribute obtruding from its otherwise smooth contour, the Yukon features a smooth hood with two slight curves on both sides of the hood. Both the new Yukon and Tahoe feature a more angular design that supposeadely gives the vehicles a nore upscale apperance. The interior was significantly redesigned as well. It features a new wooded trim dashboard with new chrome accented instrument controls. New door panels as well as new seats were also added to the interior.

Short wheelbase Tahoe production began at Arlington Assembly on December 1, 2005. SWB Yukon production begins early in 2006, with Janesville Assembly coming on line as well. Long wheelbase versions begin at Janesville and Silao Assembly in March.

Chevrolet plans to heavily tout improvements in fuel economy for the new-generation Tahoe. Highway mileage has improved from 19 mpg (12.4 L/100 km) to 21 mpg (11.2 L/100 km) with the addition of Displacement on Demand cylinder deactivation. Both the old and new versions get 15 mpg (15.7 L/100 km) in town.

The Tahoe will offer GM's new Hydramatic 6L80 6-speed automatic transmission.

The 2007 model year Suburban and Yukon XL will be unveiled at the 2006 Los Angeles Auto Show in January. Production of the redisigned GMT900 Suburban and Yukon XL begins at Janesville Assembly and Silao Assembly in March of 2006.