The Escalade moves to the new GMT900 platform for the 2007 model year. Its introduction was accelerated as sales began slipping. The regular Escalade will be joined by a stretched ESV version as well as a new EXT pickup truck. The 2007 Escalade was the official vehicle of Super Bowl XL, with MVP Hines Ward being awarded one of the first Escalades produced.

The Escalade uses an all-aluminum 6.2 L Vortec V8. The pushrod engine boasts variable valve timing, a first in a mass-produced non-overhead cam engine. The system adjusts both intake and exhaust timing between two settings. This engine produces 403 hp (301 kW) and 417 ft·lbf (565 N·m). A new six-speed 6L80 Hydra-Matic automatic transmission will be used. The new body boasts a 0.363 drag coefficient, though the large frontal area will hurt aerodynamics.

One major new feature absent from the production vehicle is American Axle's "I-Ride" rear independent suspension module. Instead, a conventional five-link suspension is used.

Production of the redesigned Escalade began at Arlington Assembly in January 2006. It will be priced from US$57,280, though the rear wheel drive version at this price will not be produced until August. The more expensive all wheel drive version will be produced first, followed by the long wheelbase ESV and EXT pickup (the latter sourced from the Silao, Mexico, plant) in June.

A special Platinum ESV model will follow in 2007. GM's Active Fuel Management will come in 2008.

The Escalade can accelerate to 60 mph (97 km/h) in 6.8 seconds. Fuel economy is rated at 14 mpg (16.8 L/100 km) in the city and 19 mpg (12.4 L/100 km) on the highway.

Engines:
+ 2007-present — 6.2 L Vortec 6200 V8, 400 hp (298 kW)

Base Pricing:
+ 2007 2WD Escalade — $54,725
+ 2007 Escalade EXT — $54,210
+ 2007 4WD Escalade — $57,280
+ 2007 Escalade ESV — $59,680