Drivers who owned cars in the 1980s and 1990s may remember a curious feature found on some gear shifters—a small letter **”E.”** While many younger drivers have never encountered it, the letter stood for **”Economy”** or **”Efficiency”** and was designed to help reduce fuel consumption.
The feature became popular after the fuel crises of the 1970s, when automakers began looking for practical ways to improve fuel economy. By selecting **”E” mode**, drivers could prioritize efficiency over performance, making everyday driving more economical.
In many automatic vehicles, activating the Economy setting changed the transmission’s shifting behavior. The car would upshift into higher gears sooner, keep engine revolutions lower, and avoid unnecessary downshifts during gentle acceleration. Some models even started in second gear, creating a smoother, quieter drive while using less fuel.
Certain manual-transmission cars, including some classic Volkswagen models, also featured an **”E” gear**. This acted as a high overdrive gear for highway driving, allowing the engine to run at lower RPMs and improving fuel efficiency on long trips. However, because it reduced acceleration, drivers often had to shift back to a lower gear when climbing hills or overtaking other vehicles.
As automotive technology advanced, the mechanical **”E”** setting gradually disappeared. Modern vehicles now rely on computerized engine management systems and advanced transmissions to optimize fuel economy automatically. What was once a simple lever or gear position has evolved into today’s familiar **Eco Mode**, controlled by the push of a button and managed by sophisticated onboard electronics.
Although the original **”E”** has faded into automotive history, it remains a nostalgic reminder of an era when improving fuel efficiency was as simple as moving the gear selector into a different position.