Visitors to the 2006 Chicago Auto Show got the first look in the country at the all-new second generation Chevrolet Avalanche. The combination SUV-pickup truck featured was capable of using E85 fuel, which uses 85 percent ethanol and 15 percent gasoline. Three models of the 2007 Avalanche include the LS, LT and LTZ models, which are available with both rear and four wheel drive. A 5.3L V-8 with Active Fuel Management that can switch from eight to four cylinder operation is standard. A 6.0L V-8 with the setup and variable valve timing is on the way.

New features include a central locking tailgate, which is spring-loaded, remote vehicle starting system and cargo cover retaining straps. The first generation Avalanche gained popularity and helped expand the SUV/pickup market segment. It featured the Midgate system which allowed the rear bulkhead to be folded down and in combination with folded down rear seats, greatly expanded the cargo capacity.