The GMC Yukon Denali included a unique front fascia and front and rear bumpers to differentiate it from its non-luxury cousin, the GMC Suburban.
While base MSRP of the 2000 GMC Yukon Denali increased to $43,535 (up $460 from $43,075 in 1999), the Cadillac Escalade retained a base MSRP of $46,225 in both 19.
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Standard equipment included sixteen-inch chrome-clad aluminum-alloy wheels, color-keyed front and rear bumpers and side cladding panels, an OnStar in-vehicle telematics and communications system, a top-of-the-line premium GM-Delco A/M-F/M cassette stereo with remote-mounted CD changer, automatic tone control (ATC), clock, and six-speaker Bose premium amplified audio system, luxury leather-trimmed seating surfaces with embossed logos in both front bucket seats, power-adjustable front bucket seats with driver's memory system, heated front and rear seating surfaces, full power equipment (windows, door locks, and heated side mirrors), a security alarm, keyless entry, full instrumentation, tri-zone climate controls for the front and rear seats, rear climate control vents, rear audio system and climate controls, a full overhead console with storage, an auto-dimming rearview mirror with compass and temperature gauge, wood interior trim, a leather-and-wood-wrapped steering wheel with cruise controls and embossed logo, automatic front head and fog lamps, roof rails with preparation for an optional roof rack, among other standard equipment. The first-generation Escalade (as well as its mechanically identical twin, the GMC Yukon Denali), was available in a single configuration (one "base" trim level with one four-wheel-drive (4X4) drive train option), and included a generous amount of standard equipment, with few options available. All first-generation Escalades featured Auto-Trac selectable 4x4. The Escalade also used the same 5.7 L Vortec 5700 V8 at 255 hp (190 kW), which was underpowered compared to the Navigator's 300 hp (224 kW) and 365 lb⋅ft (495 N⋅m) 5.4 Liter InTech V8. The Escalade's underpinnings were borrowed from the Yukon Denali line, with the GMC logos on the center caps replaced with Cadillac's crest. Essentially little more than a badge-engineered GMC Yukon Denali, the SUV's aesthetics were similar to the Denali and the final vehicle was smaller than the Navigator.
Fearing the growing hegemony of the Lincoln Navigator, the Escalade was rushed through the design process to reach dealers quickly. This generation was only a five-seat SUV. The introduction of the Lincoln Navigator in the 1998 model year necessitated that General Motors be able to compete in the burgeoning American market for full-size luxury-type trucks. The right-hand-drive Escalade and Escalade ESV are available through the third-party conversion specialists without official agreement with Cadillac in Australian, Oceanic, and Japanese markets. The Escalade ESV (Escalade Stretch Vehicle) is sold in North America, Russia, and Middle East but is available by special order only in some international markets. The Escalade is currently sold in North America and select international markets (Europe and Asia) where Cadillac has official sales channels. The word " escalade" refers to a siege warfare tactic of scaling defensive walls or ramparts with the aid of ladders or siege towers. The Escalade is built in Arlington, Texas.
The Escalade project went into production only ten months after it was approved. The Escalade was introduced for the 1999 model year in response to competition from the Mercedes-Benz M-Class, Range Rover and Lexus LX as well as Ford's 1998 release of the Lincoln Navigator. It was Cadillac's first major entry into the SUV market. The Cadillac Escalade is a full-size luxury SUV engineered and manufactured by General Motors.