The owners manual states GVW towing capacity is 6700 pounds. I was told that I could increase towing capacity of my "05 H2 to 10,000 pounds by installing a weight distribution kit to any trailer I wish to tow heavier than 6700 pounds. Is there any truth in what I was told?

 

No, there's no way you're going to safely increase GVW towing capacity unless you buy a vehicle rated for bigger loads. Many factors come into play here, including gearing, cooling system, transmission and braking, not to mention the engines ability to pull that kind of weight, which the 6.0 can not. The 6.0 has a hard time towing the rated capacity in mountanous settings and both the engine and trans temps climb fast---trust me, I've pulled my trailer enough times to know the limits.

A weight distribution hitch does just that---distributes the weight evenly among the towed load. Take a read from the following link at E Trailer, who by the way sells all kinds of cool towing accessories at good prices (I'm not affiliated with them, just really like their service!)

Common Weight Distribution and Sway Control Questions | etrailer.com