The popular Tahoe is a solid full-size SUV for serious cargo or passenger hauling. Not as bulky as the longer Suburban, the Tahoe is easier to maneuver in crowded parking lots. A rear seat DVD entertainment system is optional. A 4.8L V-8 is standard on 2WD models. The optional Vortec(R) 5300 V-8 with flex-fuel capability can use E85 ethanol blend fuel. A tire pressure monitoring system is standard.

A six speed automatic becomes standard equipment on the 5.3L and 6.0L models. LTZ models add heated and cooled seats and new trim pieces for visual differentiation. OnStar 8.0 and Bluetooth are also new. A new 5.3L XFE model aims to improve the fuel efficiency. The XFE model features a lowered suspension to improve aerodynamics, while aluminum lower control arms and wheels reduce mass. Low rolling resistance tires are also equipped. As a result, fuel efficiency increases by 1 MPG.