GM to Build Hybrid SUV

General Motors Corp. will build two sport utility vehicles – the Chevrolet Tahoe and GMC Yukon – using enhanced hybrid technology, the company said on Wednesday.

The trucks will be manufactured in Arlington, Texas, beginning in late 2007 while the transmissions, using a hybrid system to boost fuel performance, especially at highway speeds, will be designed and assembled at a transmission plant in Baltimore, GM said. The company plans to invest up to $118 million to upgrade the Allison plant in Maryland.