The 2021 GMC Yukon Denali will offer a 3.0-liter Duramax Turbo-Diesel engine that actually costs less than the standard gas V8 engine. Opting for the Turbo-Diesel option will save you about $1,500. This unit earned a spot on Ward’s 2020 list of 10 Best Engines.
The V8 gas engine and Turbo-Diesel engine are both paired with a 10-speed automatic transmission. GMC has not released horsepower and torque specs for this engine yet or EPA ratings. We also don’t know what the towing capacity of the Yukon Denali will be when equipped with this engine.
Based on the ratings in the GMC Sierra 1500 Denali that shares this engine, though, we can assume it will get about 23 mpg in the city and 30 mpg on the highway.* On the other hand, the 6.2-liter V8 engine gets about 15 mpg in the city and 20 mpg on the highway, so the diesel option doesn’t only save you money up front but also over time on gas.**
The V8 engine option puts out 420 horsepower and 460 lb-ft of torque. In the Sierra 1500 Denali, the diesel engine puts out the same 460 lb-ft of torque, but its horsepower is just 277.