2008 GMC Yukon Hybrid

General Motors says its new 2008 GMC Yukon Hybrid will sport the world's first two-mode hybrid propulsion system in an SUV.

The new Yukon Hybrid made its first appearance at the 2006 Los Angeles auto show , flanked by the new 2008 Saturn Vue, the hybrid Saturn Aura Green Line, and a fuel-cell Equinox prototype.

GM says the new Yukon Hybrid will boost fuel economy by 25 percent over the standard V-8 Yukon, though it shares the same V-8 engine. With the hybrid adaptation and GM's version of cylinder-deactivation technology, the Yukon Hybrid keeps the performance of the standard SUV while boosting fuel economy, GM promises.

The hybrid will also be capable of towing 6000 pounds.

The hybrid technology featured in the vehicle is a version of the system being jointly developed by General Motors, DaimlerChrysler, and the BMW Group. it operates in two modes, one for low city speeds and light driving loads, with the possibility of either battery power alone powering the vehicle, engine power only, or a combination of the two. At highway speeds, another mode is engaged that uses smaller electric motors for more efficient operation.

The Yukon Hybrid goes on sale at the end of 2007.