The GMT900 Avalanche was introduced at the Chicago Auto Show in February 2006. Production of the redesigned Avalanche began at the Silao Assembly in March 2006. The Avalanche maintains the styled front end much like its sister vehicles, the Tahoe/Yukon and Suburban/Yukon XL, yet it still has the distinct midgate and integrated bed as found on the previous incarnation. It has all the same standard and available features as the Suburban and the Tahoe.
A special Z71 package was offered for the second generation Avalanche. This off road package consisted of a suspension tuned for rough terrain, an exclusive automatic locking rear differential, aluminum under body skid plates (visible from the front of the truck), wheel flares, badges, wheels and tires.
Later models introduced another version of the Vortec 5.3-liter V8 as the engine is now capable of running on E85 ethanol. When the 5.3 is running on normal gasoline, it produces 320 horsepower (240 kW) and 335 pound-feet (454 N·m) of torque whereas its output rises to 326 horsepower (243 kW) and 348 pound-feet (472 N·m) of torque on E85, up from 310 horsepower (230 kW) and 335 pound-feet (454 N·m) in 2009. For the 2010 model year, the 6.0-liter was dropped from the Avalanche lineup which left the 5.3 V8 as the only engine available for the truck. In its final year, the 6.0-liter produced 366 horsepower (273 kW) and 376 pound-feet (510 N·m) of torque.