If you learned to drive in a newer car, the letter “E” on an old gear selector can look like a strange leftover from another time. It was not a mistake, and it was not a hidden racing feature. In many cars from the 1980s and 1990s, that “E” stood for Economy or Efficiency, and it was designed to help the car use less fuel under the right driving conditions.
The idea was simple: reduce engine effort when the driver did not need quick acceleration. Long before modern vehicles had advanced computer-controlled drive modes, some cars gave drivers a direct way to choose a calmer, more fuel-conscious setting.
What the “E” Button or Gear Actually Did
The meaning of “E” depended on the vehicle and transmission. In some automatic cars, especially certain older luxury models, the “E” setting changed how the transmission behaved. Instead of holding lower gears longer, the car would shift into higher gears sooner, keeping engine revolutions lower during normal driving.
That could make the car feel smoother and quieter. In some applications, Economy mode could also encourage a gentler start from a stop, including starting in second gear rather than first. The goal was not to make the vehicle faster. It was to make acceleration less aggressive and reduce unnecessary fuel use.