It can tow, just don't expect Duramax type performance out of it. Plan to go slow, and don't tow too much. But if you have a good vortec, keep it, it'll do the same, and the cost of swapping a diesel into a vortec equipped truck would outweigh the benefits, even with the good fuel economy. Although for Russel in Canada, diesel is about the same or cheaper than in the US, I saw it for 3.49 at Safeway tonight when regular was 3.06.