What's the difference?
Commercial vans are not an exciting segment of the car industry - but they are big business.
Not only do businesses, especially fleets, need a quality van, if you can crack the market there are meaningful sales for some of the biggest name brands in the country.
Unsurprisingly, Toyota dominates the mid-size van market with its HiAce, which notched up more than 12,000 sales in 2024 to make it one of the market leader's most popular models. For Ford the Transit Custom is even more important as the brand’s third best-selling vehicle behind the Ranger and Everest.
Which is why the decline of Volkswagen’s Transporter has been a big deal for the brand, and it’s why the arrival of the all-new, seventh-generation model is such a big deal. The German maker only sold 875 Transporters last year, as the transition between the out-going model and this new one hit hard.
But that’s the past, Volkswagen is focused on the future, with high hopes this new Transporter can rise back up the sales charts. It also completes VW’s commercial van line-up, sitting alongside the smaller Caddy and ID.Buzz Cargo as well as the larger Crafter.
This new Transporter is slightly less Volkswagen than the previous six generations, though, as it is now platform sharing with Ford as part of the two automotive giants’ commercial partnership (which sees the Amarok also based on the Ranger).
By working together it has allowed the two companies to develop not only a new diesel-powered van but also an all-electric offering and a plug-in hybrid. The latter won’t be available until sometime in 2026, but we’ve just driven the new diesel and electric Transporter.
If you're in the market for a premium-style four-wheel drive wagon with eight seats and a petrol V8 engine and you live in Australia, your choices have been rather limited. You'd be looking at something like the Nissan Patrol or the Land Rover Defender 130.
Well, that has now changed as General Motors Specialty Vehicles (GMSV) is importing the GMC Yukon Denali to Australia. This top-of-the-range Yukon arrives here as a left-hand drive vehicle and is converted to right-hand drive at a facility in Victoria to suit our market.
The Denali has a price tag just under $175,000, though, and that makes it a lot more expensive than most vehicles that could be considered rivals in the Aussie market. Is it worth it?
Read on.
So has Volkswagen done enough with this new Transporter to win back buyers in what has become a highly-competitive van market?
Based on our initial test drive of the Transporter, it’s safe to say Volkswagen has a good chance of regaining some lost ground. But it won’t be easy because there isn’t any particular area where the Transporter really sets itself apart from the competition.
It’s a pleasant van to drive, with a roomy, modern cabin and a competitive cargo area, at least with the diesel engine. The electric Transporter provides an alternative choice for a small audience, but the huge price premium and limited range will mean it won’t suit the vast majority of buyers.
The real opportunity for VW will come when the PHEV arrives in 2026. That has the potential to help create some difference between itself and the likes of Toyota and Hyundai.
It’s noticeable that the brands dominating the commercial van market are the big name ones, rather than the cheaper Chinese competition, which suggests buyers are looking for a trusted name rather than the lowest price.
So from that perspective, Volkswagen has a decent chance of regaining lost ground given its heritage in the van segment.
Note: CarsGuide attended this event as a guest of the manufacturer with meals provided.
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.
Commercial vans are typically not instruments of design, but rather a study in functionality. But credit to the Volkswagen designers because it clearly looks like a Volkswagen from the outside, despite its Ford lineage. While there are obviously some similarities between the Transporter and Transit Custom inside, the front-end design definitely has a visual connection to the previous generation models.
But, of course, functionality is important and by using the Transit Custom underpinnings, Volkswagen has been able to grow the Transporter. It is 150mm longer and the standard wheelbase has been stretched by 100mm, compared to the six-generation, which allows for even more cargo space.
The cabin is well laid out, with a new 12-inch digital instrument display and a 13-inch multimedia touchscreen taking prominence on the dashboard. The multimedia system includes built-in navigation plus wireless Apple CarPlay and Android Auto, as well as digital radio.
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.
This is the really important element for any good commercial van, both the practicality of the cabin (as drivers spend long hours behind the wheel) and the cargo capacity in the back (for the obvious reasons).
Up front there’s a wireless charging pad and seven USB ports spread around the cabin. There are plenty of small item storage spots, and some not so small items, with a large shelf on top of the dashboard and multiple in-door shelves.
Of course, it’s out the back that’s really important and, as mentioned earlier, there is more space thanks to the larger overall dimensions.
Both SWB and LWB vans come with a plastic floor cover as standard, plus there are load rated tied tie down points, a 12V charging port in the D-pillar and LED lights in the roof.
Thanks to the extra length, the SWB has a 2.6m load length and 5.8 cubic metres of cargo space, while the LWB has 3.0m in length and 6.8 cubic metres. There’s also a steel fixed partition with window, window grille and load through hatch to stretch the usable space even more.
The total payload for the Transporter varies depending on the powertrain. The TDI 2WD can take up to 1062kg (SWB) and 1016kg (LWB), while TDI AWD can manage 963kg (SWB) and 917kg (LWB). The electric Transporter has a significantly lower payload, rated at 806kg (SWB) and 760kg (LWB).
Towing capacity also changes depending on the powertrain, the TDI 2WD can manage 2000kg, TDI AWD up to 2800kg and the electric 2300kg.
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”.
In addition to the multiple powertrains, there’s also a variety of body styles to choose from - van in both standard and long wheelbase, Crewvan in both lengths and the long wheelbase Dual Cab.
The Transporter TDI (diesel) SWB van begins the range at $58,590 (all prices exclude on-road costs), while the same size with electric power is priced from $83,590; so the cost of going electric is a big one.
The diesel van LWB is priced from $60,590, and the electric van LWB $85,590, so the extra room is a much cheaper upgrade.
Standard equipment on the Transporter van includes 16-inch steel wheels, LED headlights and tail-lights, keyless ignition, climate control, cloth-trimmed seats, heated front seats and a four-speaker sound system.
Customisation is a key part of the commercial vehicle market, so Volkswagen has done its best to ensure aftermarket suppliers can use the Transporter as a platform to shape it into whatever customers need - delivery van, camper, etc.
For business operators Volkswagen Australia has done a deal with a company called Sortimo. The so-called Sortimo ‘1-Click’ is a new system, exclusive to Volkswagen, that allows owners to add interval shelving options to any VW commercial van direct from the dealer. This can be added at the time of purchase so it can be included in the financing for the car.
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'.
As mentioned earlier, Volkswagen has been able to diversify the Transporter for now and into the future, which means the choice of diesel, electric and plug-in hybrid.
Despite the electrified additions, the most popular choice for buyers is overwhelmingly going to be the turbo diesel. The 2.0-litre four-cylinder unit makes 125kW of power and 390Nm of torque and is paired to an eight-speed automatic. It’s available either with front-wheel drive or Volkswagen’s '4Motion' all-wheel drive set-up.
The eTransporter is rear-wheel drive only, and has a single-speed gearbox attached to its 210kW/415Nm electric motor.
The PHEV isn’t here yet, but when it does arrive, Volkswagen has confirmed it will be producing 171kW/205Nm.
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.
Fuel economy for the diesel is rated at 7.9L/100km for the two-wheel drive variant and rises to 8.4L/100km for the 4Motion AWD.
Our test drive was limited, so we couldn’t get a fair real-world fuel figure, but if you can hit those claims, with its 70-litre fuel tank it has a theoretical driving range of 886km for the 2WD and 833km for the 4Motion - which should be enough to get even the more active delivery drivers through a few days.
As for the eTransporter, VW claims a driving range of 330km, with 125kW DC charging able to replenish the battery from 10-80 per cent in just 38 minutes. Volkswagen is confident that this should be enough to appeal to back-to-base-style operators looking to cut fuel costs and emissions.
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.
Volkswagen is a company that prides itself on its driving dynamics, even when it comes to vans. Even with the Ford influence, the new Transporter unmistakably feels like a Volkswagen in the way it drives.
It's worth noting we drove the Transporter unladen, so it may respond differently when filled with cargo, but the fundamental behaviour should remain the same.
There’s no mistaking you’re behind the wheel of a big van, but the Transporter reacts well to your inputs, so it feels responsive and surprisingly agile for such a sizable vehicle.
The same is true for the turbo-diesel engine, which feels strong enough to pull the big van along with a minimum of fuss (although, again, that was without a full cargo load in the back). What the engine does well is perform quietly. The cabin is well-insulated from the outside world, so it makes for a more relaxed environment, which will be a welcome factor for anyone looking to spend their working day inside the Transporter.
We sampled the electric Transporter and it also performed well. Dynamically it felt very similar, despite being rear-wheel drive, but obviously the bigger difference is under the bonnet. The electric motor does a fine job, but it feels solid rather than being particularly punchy. The TDI feels like it does the work easier, even under acceleration which should be the electric motor’s strength.
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.
This is an area previously overlooked, not just by carmakers but even the safety authorities. Given vans like the Transporter are on the road more than your average family car, it’s important to keep everyone safe.
There is no ANCAP score for the new Transporter yet, and the safety authority hasn’t crash tested the latest Ford Transit Custom, either. So there is clearly still some work to do before commercial vans get the same level of attention as passenger cars.
In terms of equipment, the Transporter comes with a range of active safety items including 'Front Assist' (with cross traffic alert and adaptive cruise control) and a rear view camera. There are also front and curtain airbags to protect the occupants.
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.
Volkswagen says the Transporter and eTransporter require servicing annually or every 30,000km - whichever comes first.
The diesel is significantly more expensive to service, with even the cheapest visit costing $670 and the most expensive $892. Over the first five years the Transporter will cost $3880 to maintain.
By contrast, the eTransporter costs $410 for every visit, except the 90,000km major check-up which is $496. So over five years it will cost $2136 to service.
While VW has an expansive national network of dealers for servicing, and a history with commercial vehicles, that’s not a big advantage over its key rivals in this market - Toyota, Ford and Hyundai - which all boast the same.
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.