Drivers who owned older automatic cars may remember seeing a mysterious “E” on the gear selector alongside familiar letters such as “P” and “D.” In many vehicles, particularly from the 1980s and 1990s, “E” stood for Economy. It was designed to help improve fuel efficiency by changing how the automatic transmission shifted.

When the selector was placed in “E,” the transmission would typically shift into higher gears sooner and keep engine speeds lower. This could make the car feel smoother and quieter while reducing unnecessary engine revving. The setting could also reduce frequent downshifts during acceleration, encouraging a more relaxed driving style.

For drivers at the time, this was a simple mechanical or electronic choice that could be felt immediately. Instead of navigating menus or pressing buttons to select a driving mode, moving the gear selector to “E” directly changed the transmission’s behavior.

Dedicated “E” positions have become much less common in modern vehicles. Today’s electronically controlled transmissions can automatically adjust shift patterns based on speed, throttle input, road conditions, and other factors. Improvements in engines and other vehicle systems have also made fuel efficiency less dependent on a special gear-selector position.

The basic idea, however, is still around. Many modern cars have an Eco mode that electronically adjusts throttle response, transmission behavior, air conditioning, and other systems to reduce energy use. In other words, the old “E” setting was an early version of an idea that remains common today: changing how a vehicle operates to use energy more efficiently.