Engaging Introduction
Let me tell you about the moment I stared at an old car’s dashboard and felt completely lost.
I was helping a friend move his late father’s car—a 1980s sedan that had been sitting in a garage for years. The upholstery smelled like memories. The radio was analog. And the gear shift had a letter I’d never seen before: “E.”
I knew P, R, N, D, and even L or 2. But E? What on earth was E?
“Electric?” I guessed. “Emergency?” “Exit?”
My friend shrugged. He didn’t know either. We spent a good five minutes debating before I finally pulled out my phone. The answer surprised us both.
For decades, most drivers never gave much thought to the letters on a car’s gear selector. “P” meant Park. “R” meant Reverse. “D” meant Drive. Simple enough.
But recently, many younger drivers have been surprised to discover an unfamiliar letter appearing on some older vehicles: “E.”
At first glance, people assumed it might stand for “Electric” or some forgotten transmission setting. But the truth is far more interesting. Long before modern fuel-saving technology and smart computerized driving systems, the mysterious “E” stood for Economy mode — an early attempt by automakers to improve fuel efficiency during everyday driving.
Let me walk you through the fascinating history of this forgotten gear, why it disappeared, and why a new generation is just now discovering it.
What Does “E” Actually Stand For?
E = Economy.
Yes, it’s that simple. Economy mode was designed to improve fuel efficiency by changing how the transmission shifted.
What it did: When engaged, the transmission would shift to higher gears at lower RPMs (revolutions per minute). The engine wouldn’t rev as high before shifting, which saved fuel.
The trade-off: Acceleration was slower. The car felt “lazy” or “sluggish” because the transmission was prioritizing fuel economy over performance.
Think of it as: An early, mechanical version of today’s “Eco Mode” in modern cars.
When Did the “E” Gear Exist?
The “E” gear selector appeared primarily in American and Japanese cars during the late 1970s through the mid-1980s.
Which cars had it?
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Some General Motors models (Oldsmobile, Buick, Chevrolet) with automatic overdrive transmissions
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Certain Honda models (especially the Accord and Civic) with “Econ” mode
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A few Ford and Chrysler vehicles
Why that era? The 1970s oil crisis (1973 and 1979) created a massive demand for fuel-efficient vehicles. Automakers scrambled to add fuel-saving features—including “Economy” mode on automatic transmissions.
Why it wasn’t standard: Not all cars had it. It was often an extra feature on higher-trim models or a brief experiment before better technology replaced it.
How “E” Mode Actually Worked (The Mechanics)
Let me explain what happened inside the transmission when you shifted to “E.”
Standard “D” (Drive) mode: The transmission shifted at preset RPM points, balancing performance and fuel economy. The engine could rev higher before shifting.
“E” (Economy) mode: The transmission shifted to a higher gear at lower RPMs. The engine didn’t work as hard. The car accelerated more slowly, but it used less fuel.
The overdrive connection: In many cars, “E” was essentially an “overdrive on” mode. Overdrive is a higher gear that reduces engine RPM at cruising speeds, saving fuel. “E” engaged overdrive earlier and more aggressively.
The “E” button: Some cars didn’t have an “E” on the gear shift—they had a separate button labeled “Econ” or “Economy” on the dashboard. Pressing it changed the transmission behavior without moving the gear selector.
Why Did “E” Disappear?
The “E” gear didn’t last. By the late 1980s, most automakers had phased it out.
Reason #1: Electronic transmission controls. Early automatic transmissions were purely mechanical or hydraulic. The “E” mode was a simple mechanical adjustment. When computer-controlled transmissions arrived, they could optimize shift points continuously—no separate “Economy” mode needed.
Reason #2: Overdrive became standard. Overdrive (a gear ratio that reduces engine RPM at highway speeds) became standard on most automatic transmissions. You didn’t need an “E” setting to engage it—it was always on in “D.”
Reason #3: Driver confusion. Many drivers didn’t understand what “E” meant. They worried about damaging their car. They didn’t notice a difference in fuel economy. The feature wasn’t worth the confusion.
Reason #4: The rise of “Eco Mode.” The idea didn’t die—it just moved. Modern cars often have an “Eco” button on the dashboard that adjusts throttle response, transmission shift points, and even air conditioning behavior to save fuel. But it’s no longer a physical gear selector position.
Why Are Drivers Just Discovering “E” Now?
If “E” disappeared decades ago, why are people suddenly talking about it?
The used car market: As used car prices have risen, more people are buying older vehicles. A 20-something buying a 1980s classic car might encounter an “E” on the gear shift for the first time.
Social media: Photos of mysterious dashboards go viral on TikTok, Instagram, and Reddit. Someone posts a picture of an unfamiliar “E” and asks, “What does this mean?” The post gets thousands of comments, and suddenly everyone is learning about Economy mode.
Driving a parent’s or grandparent’s old car: Many of these cars have been sitting in garages for years. A new generation is inheriting them—and discovering features their grandparents never used or explained.
Nostalgia content: Car enthusiasts on YouTube are creating videos about forgotten automotive features. The “E” gear has become a popular topic.
How Is “E” Different from Modern “Eco Mode”?
Let me compare the old and the new.
| Feature | Old “E” (Economy) | Modern “Eco Mode” |
|---|---|---|
| How it worked | Mechanical/hydraulic transmission adjustment | Computer-controlled engine, transmission, and accessories |
| What it changed | Shift points only | Throttle response, shift points, AC, cruise control, sometimes suspension |
| Driver experience | Sluggish acceleration | Softer throttle response (less “touchy” pedal) |
| Fuel savings | Modest (maybe 1-2 mpg) | Small but measurable (often 5-10% in city driving) |
| Location | Gear selector position | Dashboard button or drive mode selector |
| Today | Obsolete | Common (most new cars have Eco mode) |
The old “E” was a single-purpose mechanical feature. Modern Eco mode is a sophisticated, computer-controlled system that adjusts multiple vehicle systems.
Should You Use “E” Mode (If You Find It)?
If you own an older car with an “E” on the gear shift, should you use it?
Yes, if:
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You want to save fuel (especially on the highway)
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You’re driving on flat terrain
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You don’t need quick acceleration
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You’re patient
No, if:
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You’re merging onto a highway (you need acceleration)
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You’re driving in hilly or mountainous terrain (engine will struggle)
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You’re towing or carrying heavy loads
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You’re driving in stop-and-go traffic (frequent shifting may be annoying)
The common-sense rule: Use “E” for steady-speed highway cruising. Use “D” for everything else.
What About “E” in Modern Cars (A Few Exceptions)?
While “E” on the gear selector is gone, the concept lives on.
Toyota Prius (and some other hybrids): Some Toyota hybrids have a “B” mode (engine braking) and an “ECO” button, but not an “E” on the gear selector.
Electric cars: Some EVs have an “E” or “Eco” button that limits acceleration and reduces climate control power to extend range.
Commercial trucks: Heavy trucks sometimes have an “E” mode (Economy) that limits engine power and adjusts shift points for fuel savings.
The gear selector “E” is gone. But the idea of an economy driving mode is more common than ever.
Other Forgotten Gear Selector Letters (A Quick History)
While we’re talking about “E,” let me mention a few other letters that have confused drivers over the years.
L (Low): Keeps the transmission in a low gear. Used for towing, steep hills, or engine braking. Still common on modern cars.
2 (Second): Locks the transmission in second gear. Useful for driving in snow or mud. Less common now (replaced by manual mode or “L”).
S (Sport): Changes shift points for more aggressive acceleration and engine braking. Still common on modern cars with automatic transmissions.
M (Manual): Allows the driver to manually select gears using paddle shifters or the gear selector. Very common on newer cars.
B (Brake / Engine Brake): Common on hybrids and EVs. Increases regenerative braking to recharge the battery and slow the car without using the brake pedal.
The “E” on Old Electric Cars (A Different
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