Some might think it strange that Cadillac would introduce a new Escalade equipped with a 403-horsepower, 6.2-liter V8 engine when gas prices are so high, but when GM began planning this model years ago, it could not have predicted the unfortunate timing. But really, if you can spend upwards of $50,000 on a new SUV, are you really pinching your pennies at the pump? In addition to the 58-horsepower gain over last year, the Escalade’s motor generates 417 lb.-ft. of torque, and Cadillac thinks this new SUV will garner fuel economy ratings of 14/19 with 2WD and 13/19 with 4WD, slight improvements over the old model. Keep in mind, though, that Cadillac recommends premium fuel. A new six-speed automatic transmission with manual shift control sends the power to the pavement. Surprisingly, the new motor doesn’t come with GM’s Displacement on Demand (DOD) technology, which shuts four cylinders down under low-load conditions, such as when driving on the highway. Right now, according to Cadillac, DOD is available only on the 5.3-liter V8 found in the redesigned Tahoe and Yukon. However, DOD is due to arrive for the Escalade for 2008.

The 2007 Cadillac Escalade rides on standard 18-inch wheels, but chrome 22-inch “double dubs” riding on 285/45 Bridgestone Dueler performance tires are an option. By engineering the Escalade to accommodate 22-inch wheels from the factory, ride, handling, and safety are not compromised by the popular oversized wheels. Rack-and-pinion steering guides the front wheels, and the 2007 Cadillac Escalade is equipped with larger four-wheel-disc brakes. A five-link solid axle holds up the Escalade’s rear end, while up front there’s an independent coil-over-shock suspension and road-sensing automatic dampers. Traction control comes standard, too.