Although GMC did a complete redesign its full-size Yukon SUV last year, the rework of its luxurious Denali model was shelved until 2001.

The Denali shares its basic architecture with the GMC Yukon, Yukon XL and Yukon Denali XL, Chevy Tahoe and Suburban, and Cadillac Escalade. But with the redesign task checked off the To Do List, the Yukon Denali now tops GMC’s SUV lineup, positioned a notch below the Escalade.

But the Denali is singled out from the rest of the Yukon line by a more powerful 6.0-liter V8 that puts 320 ponies to the pavement — 45 more than the old 5.7-liter powerplant, and by a full-time all-wheel-drive (AWD) system. The AWD system features a fluid coupled transfer case that sends 38 percent of the available torque to the front wheels and 62 percent to the rear, maintaining constant traction.

Neither that Generation III overhead-valve engine, which is the best improvement on the small-block GM yet, rivaling competitors overhead-cam engines for smoothness and efficiency, or the AWD system, are available on other Yukon models. The Tahoe doesn’t offer anything comparable.

The Denali comes standard with just about every bell and whistle except a couple of personal preference items as options. That means standard equipment includes the 6.0-liter V8 with AWD, AutoRide computer-controlled suspension, 17-inch alloy wheels, four-wheel anti-lock disc brakes, heated, leather, 10-way power seats, an 11-speaker Bose stereo with in-dash six-disc CD changer, thermostatically controlled climate control, rear heat and air conditioning, power windows and door locks and the On-Star driver assistance system.

The only options are a sunroof ($900), second-row bucket seats ($290) and an engine block heater ($35). It’s also loaded with features for towing and moving cargo.

The 2001 Yukon Denali rides on the same hydroformed frame and five-link coil spring rear suspension as the standard Yukon. It gives the vehicle a smooth ride and surprisingly responsive handling for something this big.

The Yukon comes in three versions. Topping the line is the Denali. The entry level two-wheel drive SLE is equipped pretty nicely — 4.8-liter V8, air conditioning, ABS brakes, self-leveling suspension, CD stereo, power windows and door locks, fog lights, tinted glass, heated outside mirrors, leather wrapped steering wheel, and vehicle alarm. It will set you back just over $32,000. The 4X4 version is slightly over $35,000.

The other is the SLT, which comes in two trim levels, including one with front and center-row leather seats, a nine-speaker CD stereo, floor console, better bucket seats and aluminum wheels for an additional $1,400. Or, you can order an SLT package providing power seats, seat heaters, premium ride suspension, OnStar, automatic climate control and other features for just over $2,800.

As with all of the redesigns of the GMC line, styling of the new Denali is basically evolutionary, not radically changed. While the new model looks similar to its predecessor, an arched roofline adds extra headroom for the second and third rows, while the sharp edges of the previous body have been rounded.

GMC engineers concentrated on making the Denali’s interior more comfortable and function friendly. Step-in height has been reduced, making it easier to get into the driver’s seat, and touches like new pull-style door handles also make entry and exit easier.

All controls are mounted closer to the driver’s seat and instrumentation is easy to read at a glance. The Denali also features a Bose Acoustimass 11-speaker stereo with a subwoofer.

Thanks to new larger windows, visibility is excellent. The combination of sure-footed handling and good visibility give the Yukon an edge over its market competitors — the Lincoln Navigator, Ford Expedition and Toyota Sequoia — depending on trim levels.

The Denali also features optional second-row bucket seats. These allow passengers better support and let them adjust individually to suit each person and seat-mounted shoulder harnesses front and rear make the Yukon’s belts easier to deal with.

The Denali also bests the Navigator in the usefulness of its third-row seat. The Yukon’s third seat allows space for adults’ feet — not a lot of space mind you, but more than the Lincoln. It also folds, flips, slides and removes easily and even has wheels to help it roll it away for storage.

Behind the wheel, the Denali continues to impress. It smoothed out bumpy rural roads with a sedan-like smoothness thanks to its new AutoRide feature. On the freeway the Denali cruises like the best Detroit iron. AutoRide is a computer-controlled suspension that keeps the Denali level over bumps and is particularly effective in trailer towing situations which tend to cause the tow vehicle to rock back and forth over bumps. AutoRide keeps the Denali amazingly smooth.

Car-based SUVs tend to use an independent rear suspension to accomplish a smooth ride and add to the handling. GMC engineers have managed to accomplish that without compromising cargo-carrying ability. A new five-link coil spring rear suspension contributes to better ride and handling than any vehicle in this class.

The front suspension is conventional in design, except it uses torsion bars instead of coil springs. Its conventional ladder frame is fully boxed in the mid-section while the front and rear portions share the same hydro-forming technique used on the Corvette. This rigid design is a key to the Denali’s excellent handling and ride. At the very front of the frame is a section designed to collapse and absorb impact in a crash.

All Yukon Denali’s are equipped to accept a lighting plug for trailer towing, and have provisions for connecting a trailer brake controller very easily.

Whines: The Denali is limited to a traditional hatch rear door with flip-up window. The popular side-by-side cargo doors are limited to the ordinary Yukon.

I always say you don’t buy an SUV for the gas mileage and the Denali proves that with an EPA rating of 12 mpg city and 16 mpg highway. ON the plus side, the 6.0-liter V8 burns regular unleaded fuel.

Applause: The recirculating-ball steering provides good control even if it falls short of the rack-and-pinion steering found on the Ford Explorer and in many sports cars. A much-tighter 38.3-foot turning diameter makes the Yukon easier to park than previously.

The rear axle features dual-piston brake calipers for its discs. Along with bigger front discs, giving the new Denali gets a much-needed upgrade in the stopping department. A dynamic proportioning system continuously balances the front and rear brakes for maximum braking without activating the ABS.

Bottom Line: The GMC Yukon Denali offers full-size SUV shoppers a comfortable, roomy vehicle that offers more power, more seating capacity, new safety features such as side-impact air bags and handles better than its predecessor. Simply put, the new Yukon Denali is better than the old one, making it one of the best full-size luxury SUVs available.