Volkswagen Touareg vs Gmc Yukon

What's the difference?

A car as impressive as it is frustrating, the Touareg R is a vehicle for a very specific buyer. Someone whose daily commute consists of limited distances, someone who can always charge at home overnight and someone who appreciates the subtlety of the performance and luxury the Touareg brings.

For everyone else - there are better options. Performance-focused PHEVs can be tricky to charge and extract the full benefit from, and at this price you have access to some serious performance-oriented combustion SUVs or the choice of going fully electric.

While this R-badged VW might be the most mind-bending of the lot then, it also has the most 'specific' appeal.

The 2025 GMC Yukon Denali is a big, comfortable, eight-seat 4WD with few rivals in the Aussie market. However, while it may occupy its own niche, it doesn't offer enough in terms of premium look and feel and towing capacity over what could be considered its rivals – and it all comes back to that price tag. 

While it lacks a competitive warranty and its price puts it way out of reach of a lot of 4WD buyers, if you are in the market for a big premium-style wagon with a V8 and eight seats – and the Nissan Patrol and Land Rover Defender 130 aren’t your cup of tea – then the Yukon Denali just might be the right choice for you.

But when all is said and done, for the price of the Denali, you could buy two Nissan Patrols – maybe not brand-new ones – and a camper trailer and a couple of cartons of beer. 

The Touareg, as always, screams big Volkswagen. It’s more subtle than the Porsche Cayenne and Audi Q7 with which it shares its underpinnings, yet looks as slick as either up close.

It’s defined in its face by a massive black grille, integrated light fittings, and as usual with Volkswagen, some pretty subtle highlights and tail-lights in attractive LED patterns.

The wheels sell the vibe of an R. They’re enormous and gloss black, matching the theme and style of its smaller siblings, black highlight trims replace chrome or body colour bits to set it apart from the rest of the range.

It doesn’t look quite as modern as something like Kia’s Sorento or EV9, and it doesn’t look as elegant as the Volvo XC90 or as defined as the Land Rover Defender, all in the same price bracket.

This helps the Touareg maintain a certain mainstream appeal, and a sporty edge, without being too egregious.

Still, some might want some more overt visual flourish to indicate they’re driving a vehicle which is capable of sprinting to 100km/h from a standstill in 5.1 seconds.

Perhaps I’m in a different camp, one which appreciates the ‘sleeper’ nature of a giant family SUV capable of incredible driving feats when pushed.

Inside is always a pleasant surprise in a Touareg. While it might be the most affordable of the giant SUVs on this platform, it maintains the air of luxury and plush nature of its more expensive counterparts from Audi and Porsche.

You’re met by nicely trimmed leather seats and a chunky VW R steering wheel, massive screens and lavish amounts of padded leather surfaces everywhere. It feels every bit the luxury SUV the price indicates, in case you were worried you’d be getting something which feels more like a T-Roc than an Audi. For what it’s worth I quite like all the Volkswagen switchgear.

The 2025 GMC Yukon Denali is 5337mm long (with a 3071mm wheelbase), 2378mm wide, 1943mm high and has a kerb weight of 2813kg.

Suffice it to say, it’s big. 

The signature Denali grille – with LED headlights and chrome accents – is the size of a house and it’s eye-catching. 

In terms of design, the rest of the Denali is standard SUV, but it's so massive it can't help but have plenty of presence on the road. 

This 4WD has 24-inch rims, which are not suited to off-roading at all, but I’ll get to that later.

The Denali’s dual exhaust system, with polished stainless-steel tips, adds to the street-cool aesthetic. 

The rest of the Denali exterior works – but it’s an in-your-face kind of success. 

Inside, the space is cavernous and with leather upholstery, wood-look trim and soft-touch surfaces you’d expect it to feel like a plush, well-appointed cabin. But it doesn’t quite hit the mark. 

Sure, all three rows of seats offer enough in terms of comfort and amenities but, for a $175,000 vehicle, the cabin lacks a distinctive premium feel, as you'd assume it should in a vehicle at this price point. That's a bit of a disappointment.

It’s a big SUV with big interior dimensions. It feels spacious and wide on the inside with a large centre console area for spreading out and a highly adjustable driver’s seat.

The seats are plush and comfortable, and visibility is pretty solid out of the cabin. Again, you're greeted by excellent touchpoints, from the steering wheel to the door cards and there’s even lashings of padded leather trim down the sides of the centre console for your knee to rest on.

Volkswagen’s screens are usually some of the best in the business and that continues here. They’re bright, sharp and served up with attractive and mostly functional and easy-to-navigate software.

The hardware behind them is also enough to keep them lightning fast when reacting to inputs, with satisfyingly smooth animations, too.

The one thing I like a bit less is how a few of the menus can be confounding. It took me a while to figure out I needed to set the default battery level higher than its current charge to get the engine to stay on, and I’d also love a button to simply switch between EV and hybrid mode.

In fact, the lack of buttons is one of the major issues in this car. Sure, the enormous centre screen is an impressive feature, syncing up with the dash design nicely, but you’re also forced to negotiate with touch elements for key climate functions. No matter how fast or slick the software is, there’s no compensating for a toggle or dial you can easily reach while you’re focused on the road.

For what it’s worth, the wireless Apple CarPlay worked seamlessly with the car in my time with it (and looked good too) while the wireless charger is rubberised and in a good location so your phone will be able to at least maintain its state of charge on the go.

Storage is plentiful up front, with large pockets with integrated bottle holders in each door, a large dual cupholder set-up in the centre console with variable edges and a large armrest console box.

In the back seat I have enough room for myself behind my own driving position at 182cm tall. It’s plenty wide and tall, but I don’t feel as though I had an enormous amount of legroom considering the size of the vehicle.

Still, the width will give you space for three adults across in relative comfort. Yes, there’s a large raise in the floor in the centre position to accommodate the all-wheel drive hardware underneath, but the width of the floor should allow a centre passenger to put their feet on either side.

Big door openings and the wide cabin make for easy child seat fitting, and there's even built-in window shades alongside two rear climate zones with physical controls, large bottle holders in the doors and a drop-down armrest, with some flimsy nets on the backs of the front seats to round things out.

Boot space is allegedly enormous at a quoted 810 litres, but the shape of it is less than ideal. Sure it’s nice and wide and oblong shaped at the base, but the rake of the boot quickly eats into the amount of height available, making it tricky to fit larger objects.

The space accommodated our CarsGuide three-piece luggage set with ease, but it didn’t leave much room to spare. It doesn’t feel like it’s double the 400 litre space typical of a one size-down SUV. 

There’s also a needlessly complex two-piece shelf, which lifts with the tailgate, but the boot wouldn’t completely close with the luggage set present unless you removed it. To the Touareg’s credit, the second row seats hinge forward significantly to expand space by a fair bit.

Under the floor there’s only a repair kit, as the huge PHEV battery takes up the rest of the space. A decidedly less than ideal flat tyre option.

The Denali has retractable sidesteps, which is a big help to hobbits, such as me, and it also has big grab handles, again a welcome addition for the purposes of easier ingress for those on the wrong side of tall.

Once you climb inside, it’s easy to appreciate the fact that this wagon’s interior is vast, functional and comfortable, with plenty of storage spaces for everything – glove box, centre console, sunglasses case, door pockets etc – and plenty of charge points for your array of smart devices, even a wireless charge pad. 

It’s a well-designed cabin but, as mentioned earlier, the Denali lacks the prestige fit and finish and even build quality usually showcased in something at this price-point.

Instead, there are expanses of hard plastic throughout, storage receptacles with flimsy lids, and lacklustre fit and finish here and there.

The vertically-oriented 16.8-inch touchscreen multimedia system is simple enough to use, even when the road gets bumpy, although it sometimes took a few stabs of my finger to get the system to register a command.

Climate control switches and the like are located under the screen.

The three rows of seats offer more than adequate levels of comfort – the front seats are heated and ventilated and the second row’s outboard seats are heated – and each row also has the appropriate amount of amenity to suit its occupants, including cupholders, USB-C sockets, map pockets and the like.

The second-row seats even have 12.6-inch HD colour touchscreens – one on the back of each front-row headrest – with which to enjoy… whatever. Those units also have wireless headphones so everyone else in the vehicle doesn’t have to listen to… whatever.

Those in the third row get air vents, a USB-C plug and two cupholders on both sides. 

Rear cargo volume with all seats up is 722 litres. With the second row folded that number expands to 2056 litres, and with only the front seats left standing you have a 'yuge' 3480 litres to play with.

The boot area has tie-down points, a shallow section of underfloor storage and plenty of packing potential. The tailgate door is power-assisted with remote open and close.

As I mentioned, the Denali’s interior is very functional and very comfortable and that includes the second and third row, which offer plenty of space. 

Overall, my thoughts on the Denali’s cabin interior boil down to “massive”, “comfortable” and “feels cheap”.

The 2025 GMC Yukon Denali is a top-shelf, eight-seat, 4WD V8-powered wagon with a price-tag of $174,990, before on-road costs. 

The standard equipment list is a comprehensive and its more notable features include a 16.8-inch touchscreen multimedia system (with wireless Apple CarPlay and Android Auto - but no sat-nav), a 14-speaker Bose sound system, power-adjustable heated and ventilated leather-accented seats, a head-up display, 12.6-inch rear HD touchscreens for the second-row passengers, a panoramic sunroof and an auto-sense power rear door.

It also has a 360-degree high-definition camera system (with up to 11 camera views), power-retractable sidesteps, 24-inch machined and painted 'pearl nickel' alloy wheels (on Bridgestone all-season tyres), all-around adaptive air suspension and a maximum braked towing capacity of 3628kg (when it has a 70mm ball and weight-distribution hitch).

Exterior paint choices include 'Onyx Black', 'Summit White', 'Titanium Rush Metallic', 'Volcanic Red Tintcoat' (on the test vehicle and costs $2000), 'Downpour Metallic', 'White Frost Tricoat' and 'Sterling Metallic'.

The Touareg offers a performance-focused plug-in hybrid (PHEV) drivetrain. Usually this means a little turbo four-cylinder engine and an electric motor, but instead this big SUV offers a 100kW electric motor and a 3.0-litre V6 turbo-petrol engine which combine for a whomping “total system power” of 340kW/700Nm.

This allows a 0-100km/h sprint time of just 5.1 seconds. Power is sent to all four wheels via an eight-speed automatic transmission and Torsen central differential. Up to 70 per cent of power can be sent to the front wheels, with up to 80 per cent of power going to the rear.

It is capable of driving at up to 135km/h under electric power alone, with the V6 kicking in beyond that speed.

It’s a rare set-up for two reasons. Firstly, it’s a plug in which maintains a large six-cylinder engine, and it runs even electric power through the transmission to all four wheels.

Some PHEV rivals, for example, use front combustion-drive only with no mechanical connection between the engine and the rear axle, which is driven purely electrically.

When it comes to towing specs, the Touareg offers solid official figures of 750kg for an unbraked trailer and 3500kg braked, although the maximum towball download is 220kg.

The GMC Yukon Denali has a naturally-aspirated 6.2-litre V8 petrol engine – producing 313kW and 624Nm – and that’s matched to a 10-speed automatic transmission.

This is an impressive set-up – the Denali is punchy off the mark, smooth and refined at highway speeds and overall it offers a composed and comfortable driving experience.

The Denali has a full-time 4WD system, selectable driving modes include 'Normal', 'Sport', 'Off-road' and 'Tow' and an electronic limited-slip differential is standard.

Like other plug-in hybrids, the official combined (urban/extra-urban) cycle fuel efficiency number for the Touareg R is an eyebrow-raisingly low figure which you know won’t be achievable in the real world, but is probably technically feasible in lab-style conditions. 

In this case, it’s 3.3L/100km. When I picked up the car it had a low charge level, and the next day I was able to top it up to just 50 per cent because I don’t have a power point in my garage, and the achingly slow 3.6kW maximum AC charging speed is severely limiting if you need to rely on the public network, as the 17.9kWh battery is relatively large.

This should bring you to the obvious conclusion the Touareg R is not a good hybrid if you can’t charge at home, as you’ll never extract the full benefit of the electric set-up. Perhaps adding evidence to this is its official energy consumption which comes in at a painful 21.1kWh/100km.

As for hydrocarbons, in my week of driving (in which I tried to pick up charge wherever I could) I saw over 14L/100km. Makes sense for a heavy petrol V6 SUV. I’d say you’re likely to see a figure like this on a longer journey or if you drive it with enthusiasm as the R badge encourages. To add additional pain, it requires 98RON premium unleaded fuel.

With a realistic maximum pure-electric range of closer to 40km compared to the official WLTP-rated 51km (more on this in the driving section of the review), the R is also best for people whose daily commute is relatively short.

I can’t imagine, for example, the best benefit of this car will be extracted from someone who lives in the urban sprawl and commutes to the city every day with distances in excess of 50km for a return journey.

Additionally, the hybrid mode is very EV-heavy, draining the battery relatively quickly unless you manually put it in preservation mode.

For nerds who could be bothered, this mode is potentially a nifty feature allowing retention of some EV range at the end of a long freeway journey. But it takes a certain buyer to even be bothered with this.

Can you see why plug-less hybrids are the Australian new car buyer’s electrification configuration of choice?

Obviously, with such a big vehicle – almost three tons – driven by such a big V8 engine, fuel consumption is a concern. The 2025 GMC Yukon Denali has a listed fuel consumption figure of 12.8L/100km (on a combined, urban/extra-urban cycle).

I recorded 16.2L/100km on this test. I did a lot of high- and low-range 4WDing and this wagon was never working hard.

The Denali has a 91L fuel tank so, going by my on-test fuel-consumption figure, you could reasonably expect a driving range of about 560km from a full tank. 

Here’s where things get a bit frustrating, and your experience will vary dramatically depending on how you use this car.

One thing we can get out of the way immediately is the Touareg is deeply technically impressive when you attack a few corners. Its immediate electric thrust is capable of propelling this large object forward with eye-widening speed, and the air suspension, wide grippy tyres, Torsen centre differential and tidy steering tune conspire to make it mind-bending to carve corners in.

It’s flat, stable, and far more accurate and agile than expected. The only hint as to the sheer physics of wrangling the Touareg around bends is the tyres screaming out in agony as the suspension and all-wheel drive system work their magic to keep it all under control.

Once the electric torque pushes you out from the corner, the deep satisfying thrum of the 3.0-litre petrol V6 quickly takes over as you lurch forward on the almost fluid-feeling suspension. It’s laugh-out-loud satisfying and certainly enough to capture passengers' attention.

In this sense, the R fulfils its mission of transforming the big Touareg into a handling and acceleration hero, but despite all the cleverness it doesn’t feel as sharp or lean as the Golf R, T-Roc R or Tiguan R.

There’s still a massive battery, as well as huge complexity and weight to deal with, no matter how technically fast it is. There’s always the unsettling feeling of this amount of weight moving around, and the occasional slight delay from the transmission as it figures out what’s going on between the electric motor and big engine.

Then there are the compromises. Normally, I’m a huge fan of how plush and luxurious the Touareg feels. It’s usually such a step above its station in the VW Group, occasionally even feeling preferable to its platform relations, but the R has some issues.

For a start, the enormous 22-inch wheels and low-profile tyres ruin the day-to-day ride quality, crashing over bumps and road imperfections, despite the fact there’s also air suspension supposedly providing a buffer between you and the tarmac.

Even in the more comfort-oriented drive settings you can hear and feel every bit the moment the wheels contact a pothole or bump. Clearly, it’s tuned more toward handling than maintaining the same luxury feel as the rest of the range.

The transmission is also occasionally hesitant, either from a standing start or when switching between electric thrust and the engine. This is much better when the battery is charged up from the reserve level, as there isn’t enough charge when driving around as a hybrid to push a big, heavy (and always) all-wheel drive very far.

But hybrid driving is also frustrating, for reasons mainly related to the software. With the battery charged, the 51km of claimed driving range feels a tad ambitious. I was able to charge it to about 50 per cent (the battery is huge, at 17.9kWh, and I could only pull about 3.5kW from a local AC charging unit) and scored about 20km of driving range.

It drains quickly, even in the hybrid driving mode, as it relies on the electric motor a lot for initial take-off.

This means unless you set the battery preserve mode manually in the hybrid settings screen, it will likely run the battery dry before you’re even able to get it somewhere where it can take full advantage of the extra electric thrust.

As an electric vehicle it’s also only alright. The short time I was able to spend in full EV mode proved the battery will drain faster than advertised, and the regen is so-so for assisting in braking.

Other more performance-focused PHEVs suffer the same issue. For example, I felt largely the same way about the much-maligned four-cylinder PHEV Mercedes-AMG C63.

While hybrids like this may be impressive when conditions are ideal, they’re ultimately frustrating to use in reality. It’s a shame, because I wanted to like it more but it doesn’t quite capture the same magic of its R-badged forebears and siblings.

The Denali is imported to Australia as a left-hand drive vehicle and then Walkinshaw's subsidiary company Premoso remanufactures the US 4WD wagons to right-hand drive at their facility in Clayton, Victoria. 

And that mob has done a commendable job.

Firstly, the Denali is very impressive on general driving duties – settled and composed, that V8 just rumbles along. It’s pretty close to flawless on the open road - smooth and refined. 

But off-road is a different story – especially in low-speed technical low-range 4WDing – and a lot of that has to do with the Denali’s sheer bulk and its 24-inch wheels.

The big pizza plate rims and paper-thin Bridgestone all-season tyres (285/40) aren't suited to four-wheel driving as they don’t offer the grip of a decent all-terrain and you can’t drop air pressures because there isn’t enough tyre there. Worth noting the spare is a Maxxis Bravo HT-750 (265/70R17).

In its favour, though, the Denali has a range of drive modes – one of which is Off-road and that seems well calibrated for a variety of 4WD situations – as well as high- and low-range gearing and an electronic limited slip diff.

Steering has a nice balance to it at low speeds, throttle response is quite impressive and controlled. And you can call on that 624Nm from the big 6.2-litre V8 pretty much as you see fit, and it delivers it smoothly and in a controlled fashion. 

This top-shelf variant has air suspension – that does some levelling out of even major imperfections in the road or track surface – and it does have a special damper system also working away to even out ride and handling. 

In terms of off-road measurements, the Denali offers approach, departure and rampover angles of 24.8 degrees, 20.5 degrees and 22.5 degrees, respectively.

Ground clearance is listed as 205mm, wading depth is not quoted, but likely a guesstimated 700-800mm, and turning circle is 12.4m.

And again, this is a big vehicle – 2813kg – so it requires more consideration, more patience, more skill and probably more experience than perhaps some smaller four-wheel drives do. 

The Denali's payload is listed as 634kg, which is not a lot for a massive vehicle like this. Its towing capacities are 750kg (unbraked) and 3500kg braked.

If you do, however, put a 70mm tow ball and a weight-distribution hitch on the Denali, you can tow as much as 3628kg legally (braked).

That's not a lot more than something like the Nissan Patrol, which is 3500kg, or the equivalent 4WD wagon or ute available in Australia already. So the extra towing capacity in the Denali is not that big of a selling point. GVM is 3447kg and GCM is 6577kg.

Ultimately, even though the Denali has sound four-wheel drive mechanicals and reasonable off-road traction control, it's hampered by its gargantuan dimensions and let down by its 24-inch wheels and paper-thin tyres.

If you got rid of the standard wheel-and-tyre combination and replaced it with a set of decent, aggressive all-terrain tyres on 17 inch or 18 inch, or even (if you had to) 20 inch wheels, those changes would go a long way to making this over-sized 4WD capable in some off-road scenarios.

In its current state, however, the Denali is a tow vehicle playing at 4WDing rather than the other way around.

The GMC Yukon Denali does not have an ANCAP safety rating because it has not been tested.

Standard safety features include six airbags (including full-length curtain airbags for all three rows) and a full suite of driver-assist tech includes AEB (with pedestrian detection), adaptive cruise control, blind-spot monitoring, lane-keep assist, rear cross-traffic alert, front and rear parking sensors, tyre-pressure monitoring, a surround-view camera, trailer sway control, trailer hitch guidance with hitch view and more.

The standard five year, unlimited kilometre warranty features with one year of complimentary roadside assistance provided (renewed for another year with each service at an authorised dealer).

Servicing is required once every 12 months or 15,000km and the most affordable way to do it is with pre-packaged service plans bundled in with purchase. These come in at $3400 for five years (a saving of $668 over the a-la-carte program) or $2050 for the three year plan (a saving of $222).

Even in its most affordable form this makes servicing average $680 a year which is a far cry from most affordable brands, but it could be worse considering the complexity of the powertrain.

The 2025 GMC Yukon Denali has a three-year/100,000km warranty – which is on the wrong side of ordinary in this day and age.

Roadside assistance is available for three years but check with your dealership for more details on that.

Servicing is scheduled for every 12 months or 12,000km. The first three workshop visits come in at $398.33, $420.33 and $506.48, including GST. Not outrageous for such a hefty beast.