Originally, when the GMC Yukon Hybrid and the Chevrolet Tahoe Hybrid made their debut, GM said they expect a 25 percent improvement in fuel-economy than their standard versions. GM then said that it expects the hybrid SUVs to get 40 percent better fuel-economy giving them both 19 or 20 miles to the gallon.

Well now, GM is saying that the 2008 Chevrolet Tahoe and GMC Yukon Hybrid SUVs will deliver fuel economy gains of 50 percent over their non-hybrid models.

GM will officially announced the EPA fuel economy estimates of 21 mpg city and 22 mpg highway for the two-wheel drive hybrid versions of the Tahoe and Yukon, figures that compete with the Toyota Camry (non-hybrid model. Both the Tahoe and the Yukon match the 4-cylinder Camry’s 21 mpg city rating and beat the V6 Camry’s city rating by 2 mpg.

GM is hoping to sell 10,000 units annually of both hybrid SUVs combined. While pricing has yet to be announced, analysts expect them to be in the mid-$40,000 range.

When the Yukon and Tahoe Hybrid debut this fall, they will be equipped with, what GM calls, a two-mode hybrid that uses two electric motors. The engine is costing GM $10,000.

GM will also offer the two-mode hybrid engine in Cadillac’s entire lineup with the Escalade to be the first in 2009.

Source: Automotive News (Subscription Required)

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