2008 Chevrolet Tahoe Hybrid- Photo Gallery

With the addition of the world's first light-duty two-mode full hybrid propulsion system in an SUV, the Chevrolet Tahoe and GMC Yukon Two-mode Hybrids will deliver a 25-percent improvement in fuel economy and a superior driving experience that SUV customers know and love.

"The Tahoe and Yukon Two-mode Hybrids combine the functionality and comfort of a full-size SUV with a two-mode full hybrid system that optimizes fuel efficiency in city and highway driving, the way most Americans use their vehicles," said Stephens.

The Vortec V-8-powered two-mode hybrid is expected to deliver a composite fuel efficiency improvement of 25 percent when combined with Active Fuel Management cylinder deactivation technology. Pricing and production volumes have not been announced. The two-mode hybrid system, originally implemented by GM in transit buses in 2003, is being cooperatively advanced and adapted by BMW Group, DaimlerChrysler and GM for use in a broad variety of cars, trucks and SUVs.

The partnership pools the expertise of all three companies to leverage automatic transmission technology and electronic controls in an integrated, powerful and compact system that can be used with both gas and diesel engines.

The two-mode hybrid system features two modes optimized for city and highway driving. In the first mode, at low speed and light loads, the vehicle can operate in three ways: electric power only, engine power only or in any combination of engine and electric power. When operating with electric power only, it provides all the fuel-savings benefits of a full hybrid system. Leaving the engine shut off for extended periods of time and moving under electric power at low speed is key to reducing fuel consumption in heavy stop-and-go traffic.