Older drivers may remember automatic cars with a gear selector marked with the familiar “P” and “D,” but some also had an unusual “E.” In many vehicles from the 1980s and 1990s, “E” stood for Economy, a setting created to improve fuel efficiency during a time when saving gasoline was an important concern.

Selecting “E” changed the way the automatic transmission operated. The car would generally shift into higher gears sooner and keep engine speeds lower, helping create a smoother and quieter driving experience. It could also discourage aggressive acceleration and frequent kick-down shifts, encouraging a calmer driving style. Unlike modern cars, these older systems gave drivers a simple physical way to choose how the transmission behaved, with no complicated menus or electronic settings.

Today, a dedicated “E” position is uncommon because modern vehicles are designed with efficiency in mind from the start. Computer-controlled transmissions can automatically adjust shift points, while modern engines, tires, and other systems help reduce fuel consumption without requiring a special gear position.

The idea behind “E,” however, has not disappeared. Many modern cars offer an Eco mode that adjusts the transmission, throttle response, air conditioning, and other systems electronically. In electric vehicles, the letter “E” can also refer to electric propulsion and features such as regenerative braking. The technology has changed, but the original goal remains the same: using less energy while driving.