GMC Yukon Denali 2025 review: Australian first drive

The Australian debut of the GMC Yukon Denali is not just a local launch of a new vehicle but also one for the American brand into the Aussie market. Rather than using exisiting branding (Silverado for example), GMC feels it offers enough to Australian buyers to stand on its own two feet.

Yukon has always been a big dog in the SUV GMC range, even though it was originally introduced in America back in 1992 as a SWB two-door off-roader that shares more with a Ford Bronco, design wise, than a family SUV.

So we can clearly see that the latest 2025 version has had a very large revision globally ahead of this introduction to the Australian market.

While the locally established Chevrolet brand does offer its Tahoe overseas – the Yukon’s badge engineered twin – it’s interesting that importer GMSV (aka GM Australia) doesn’t lean on this legacy for the launching a big SUV into Australia. The feeling from the importer is that GMC (the brand) has enough to offer to position itself as separate to Chevrolet (the brand).

So here it is, the 2025 GMC Yukon Denali, due in showrooms late May 2025. Denali is a premium variant nameplate in the Yukon (and broader GMC) line-up, with GM Australia going so far as to say that the Denali is the ‘aspirational model’.

Adding confusion (for US buyers) is that there is also a different, larger Yukon XL, which is twinned with Chevy Suburban. To hopefully simplify things for Aussie buyers, there are no additional plans on the table for other GMC models just yet, but naturally GM Australia tells us they want to change that with other segment offerings.

So, how does this work? Well, the GMC Yukon starts off its life by being manufactured in Arlington Texas in the US of A. They are then shipped over locally, and remanufactured here in Australia with their right-hand-drive conversion. Local ADR shaped boxes are also ticked to suit local legislations, and it’s job done.

During the research and development period, GM Australia says it used approximately ten vehicles, with total testing distance of more than 100,000km covered. As this big rig is really destined for caravan parks or horse stables, towing was thankfully a key component of this testing and evaluation process.

GM Australia also mentions there was a heavy focus on component selection and development, with core items for testing including firewall strength on corrugations, windscreen wiper testing, and exhaust temperature measurements.

The Yukon Denali will join the Silverado 1500 and Silverado 2500 HD in Australia and New Zealand. GM Australia mentioned at the launch they have over 2500 expressions of interest so far across these regions, showing initial hype for the product. And we can see why given that there aren’t too many big V8-powered 4×4 wagons on the market these days.

Being a big tow rig GMC has stuck with a stout body-on-frame construction with a seperate ladder chassis. GM Australia is keen to stress the truck DNA found in the Silverado models – the GMT T1XX platform – has been carried over to the Yukon Denali.

How does it drive? This is a family friendly tow vehicle first and foremost, not a hard-core off-roader. You need to let that sink in before getting behind the wheel.

On the move, the Yukon Denali feels quite planted to the road, even on incredibly wet mountain roads we were experiencing. I was genuinely very impressed with amount of grip and sure-footedness the Yukon Denali exhibits.

It’s just very easy to drive, even though the exterior dimensions are intimidating for some. The steering feel is perfectly balanced, too, feeling just right for such a large vehicle.

Negative wise, my first gripe is the brakes felt spongey on initial take up, then felt too firm – no Goldilocks vibes here. We suspect this is done on purpose, as it could be off assistance to folk that tow. And it’s something you’ll get used to.

Something you would have noticed are the monstrous 24-inch alloy wheels…an interesting choice for an Australian 4×4, especially as a wheel this size is simply not required when you can physically see the brake rotors aren’t that big to require a rim with such gaping brake hardware clearance.

In theory, you’d be easily able to drop down to a 20-inch or perhaps 18-inch rim in order to fit more suitable all-terrain or off-road focussed rubber, but the legalities of such a move would need to be investigated in your state.

So while the 4WDer in us is nervous about seeing 24-inch wheels, GM Australia seemed super hyped about them. Thankfully, there’s a bit of tyre sidewall and we aren’t just running on liquorish straps. But you aren’t getting a replacement spare tyre for this rig with ease, especially when touring out in a rural area.

Numbers wise the 6.2L V8 engine produces 313kW and 624Nm and has been mated to a ten-speed automatic transmission.

That V8 is a sweet unit, performance wise, one that loves a rev but also loves a drink. We saw fuel consumption figures of close to 30L/100km when giving the Yukon Denali a playful squirt through the hills. But did also see it however around 14L/100km when chilling.

I feel the engine could rev even harder by slightly changing the shift pattern tune, however. While there are four exhaust tips, a little more exhaust noise wouldn’t go astray. Hey, if you are playing for a V8, you want to hear it.

There’s also an electronically controlled limited slip diff, and drive modes including Normal, Sport, Off-Road and Tow/Haul to select when required via the massive Infotainment screen, that GM Australia refers to as a 16.8-inch tablet-inspired display.

Braked towing capacity is listed as 3,628kg braked, being class leading. It’s claimed that this is the highest towing capacity of any SUV on sales in Australia or New Zealand.

This figure must utilise a weight distribution hitch, that is the manufacturer’s recommendation. As is the use of a 70mm towball, so it’s not exactly a plug-and-play arrangement if you want to tow that additional 128kg compared to other class leaders – at least those in the dual-cab ute space – that offer 3500kg towing capacities.

Suspension wise you’ll find an Adaptive Air Ride Suspension system, meaning there are no coil springs to be seen here. A key function of this air suspension is the Automatic Load Levelling function, that adjusts the stiffness of the the suspension to enhance ride quality – perfect when you are towing.

Having a selectable ride height is helpful when driving off-road as you can raise the vehicle to clamber over technical terrain. This feature can be set to a selectable mode as well as a set-and-forget mode where it is automatically operated.

Handy for towing and off-roading, but also great for entering and exiting the vehicle if you are on the shorter side or have reduced mobility. Electronically opening and closing side steps have also been included, and operate when doors are opened.

There’s only one variant, the Denali, available and it starts at a frosty and recently hiked $174,990 before on-road costs. When asked about the pricing, GM Australia says it feels that you are getting a lot of car for the money…even with the recent price rise.

And that I feel will be a sticking point with the GMC Yukon Denali: its price.

We’ve asked mates in the off-road industry who travel to America regularly, and they swear by the Yukon. But here in Australia it’s a tough justification when the likes of the proven Nissan Patrol offers similar specs (albeit with a horribly dated interior,) for under $100,000.

We dare say that the Nissan Patrol, let alone the Warrior version, will be a better performer off-road, too, so it’s a head versus heart decision here as far as your reviewer here is concerned.

Sure the Yukon has a swish interior, a heavy duty chassis and driveline, and a petrol V8 engine. It has loads of tech inside, and it is more than competent at long distance driving and towing duties. But for close to $200,000 on the road, though, you’d have to really need it as well as want it.

We’re looking forward to further testing and bringing one into the Chasing Cars garage so more of the team can experience the vehicle. And putting it through even some moderately challenging beyond the hot-mix.

Maybe a trip to the local beach is in order – we want to hear that V8 sing under load. We’re not so keen on bending those flash electronic sidesteps or getting those so-called Painted Pearl Nickel 24-inch wheels all scuffed up on a bush track…