Walkaround: Like its sibling, the Chevy Tahoe, the Yukon was redesigned for 2007, and is much improved in many ways. Although it’s actually larger than it’s predecessor, it looks smaller and more compact. While the wheelbase stayed the same, it’s three inches longer and wider than the previous model — nearly all of which encompasses added front seat legroom and cargo area. That gaudy plastic cladding GM designers were too in love with for far too long is gone as well, in favor of smooth surfaces and tall, symmetrical side glass that fits flush with the surrounding body panels. Remarkably tight body panel tolerances rival the highest quality imports.

The wheel wells have been squared-off but almost scream for larger wheels and more rubber than the standard 20-inch chromed aluminum wheels and low profile, blackwall tires.

The softer-looking, single piece front end remains true to GMC’s trademark grille and lower air intake, without compromising the Yukon’s presence by its friendlier appearance. Large headlight housings offer good vision and a more sharply raked windshield adds aerodynamic slipperiness.

The Yukon’s overall new look doesn’t exactly carry all the way to a back end that’s basically a door positioned between two taillights. But a family vehicle built to accommodate nine people and haul their stuff restricts styling options. The independently hinged rear window permits easy loading of smaller cargo and is a nice touch though.

Interior: Inside, everything’s new with a number of thoughtful conveniences built in. The Denali’s instrument cluster, which is LED backlit and trimmed in chrome is positioned six inches lower than previous models, which when coupled with the new windshield angle, expands forward visibility. All control knobs are surfaced with a cool rubber material and trimmed in chrome also.

The previously borderline dysfunctional mishmash of knobs, switches and assorted gauges, is replaced with a logical arrangement of related functions clustered to the left of the steering column and underneath the display screen mounted atop the center stack. The display is home to the optional touch-screen navigation system, which also features a backup camera, as well as a new digital CD/MP3-compatible 10-speaker Premium Bose Centerpoint Surround Sound System. XM satellite radio is also available.

The seats have been redesigned and use more foam, but somehow take up less room without sacrificing comfort or size. Captain’s chairs, a removable three-passenger, third-row bench seat, and a wood-and-leather trimmed steering wheel are all standard on the Denali.

Options include a remote starting system, ultrasonic rear park assist, power-articulated running boards, a heated windshield wiper fluid system, very cool rain-sensing automatic wipers that come back on a delay to catch that very last drip, as well as the now-requisite rear DVD entertainment system with an eight-inch foldaway screen and front loading disks, heated front and second row seats, a power liftgate, and for the feature-challenged, power release fold and tumble second row seats that automatically fold away with the touch of a button. Third row seats are easily removed and can be carried like a suitcase.

Cargo space behind the third row is limited however to just 17 cubic feet — less than the Ford Expedition, Toyota Sequoia or Nissan Armada. But with the second- and third-row seats folded, the Denali offers comparable cargo space — exceeding the Armada by more than 10 cubic feet, and just slipping by the Expedition, but losing to the Sequoia by almost 20 cubic feet.

Standard safety features include GM’s standard StabiliTrak electronic traction and stability control system, much-improved, larger four-wheel ABS disc brakes that are quite frankly, outstanding, roof-mounted head curtain side air bags with rollover protection for all seating rows and front-seat safety belt pretensioners linked to the vehicle’s sensing system to provide deployment in rear-end crashes. On Star, Generation 6, which is free for the first year, is also standard as is a tire pressure monitoring system.

Under The Hood: The Yukon Denali features a 6.2-liter V8 that delivers 380 horses, with all-wheel drive and a new six-speed automatic with a manual shift function managed by a rocker switch in the handgrip on the column shift lever. Standard features include an auxiliary transmission oil cooler, locking rear differential, Autoride suspension, and a 7700-pound trailer-towing package that bests the Sequoia’s 6500-pound rating. Ford and Nissan both rate their tow packages at a maximum of 9100 pounds.

There is also an Active Fuel Management system that shuts down half of the engine’s cylinders under light load, putting the 2007 Yukon at head of the fuel economy class by as much as four miles per gallon, with a combined highway/city rating of 18 — not bad for a full-size SUV.

Behind The Wheel: I found the 2007 GMC Yukon Denali very agreeable on a wide variety of terrain and road surfaces. Power is smooth and certain with no surges or blips because the fuel-management transitions are seamless — the only noticeable indicator being a slight tachometer tic.

I found the ride comfortable and quiet, with tracking flat and sure, even when taking sweeping curves marked 45 mph at 65-70. The rack and pinion steering — new for 2007 — delivers sharp, precise turns thanks to a stronger, stiffer frame, new, coil-over-shock independent front suspension, a revised, multi-link, live axle rear suspension; and the wider track. The turning circle was impressive, using less space for a U-turn than most other SUVs in this class — and even some considerably smaller vehicles.

I found braking to be solid, firm, and confident due to the new, larger disc brakes with dual-piston calipers that are 50 percent stiffer than those on the previous-generation model.

Whines: Third-row legroom is limited, positioning feet and knees at chest level. The Expedition, Sequoia and Armada all offer more legroom for third-row passengers. However climbing in and out of that rear seat is surprisingly easy. Sound deadening material mutes road noise, but there’s wind whistle around the multiple door seals. Requiring the stereo to be on for the navigation system to operate is an annoyance.

Bottom Line: The 2007 GMC Yukon Denali offers an astonishingly fresh and comfortable interior, a sleek, new body mounted on a new, stronger and stiffer frame, a new power steering system, beefed up brakes, and improved suspension. It’s a nice package that’s a real leap forward, a strong market contender, and easily the best Yukon I’ve ever driven.