I own a Gen II.5 and an Gen III. We have had the Gen III for almost 6 years (bought it new). We used to tow a 2500 pound Snowmobile trailer back in Michigan on a regular basis. We never had any issues regarding power or stopping. When we moved to Colorado, we towed a Toyota Corolla with no issues (car and trailer around 3500 pounds). One note however, the gas mileage really seems to drop while towing with the '03 3.8 equipped monty. Normally my wife gets around 18 mpg on the highway, towing dropped that to around 12 mpg. (I actually get better mileage with my '98 3.5, but I have never towned with it.)

The Gen III is very cushy and has been rock-solid as far as reliability for us. Nothing but scheduled maintenance since new. I personally don't feel it is the best tow vehicle due to the gas mileage issue, however it is a great 7 passenger vehicle.