Older drivers may remember automatic cars with a gear-shift position marked “E” alongside the familiar P, R, N, and D. In many vehicles from the 1980s and 1990s, “E” stood for Economy. Selecting it changed the transmission’s shifting behavior, encouraging earlier upshifts and lower engine speeds to promote smoother, quieter, and potentially more fuel-efficient driving.

Unlike today’s computerized systems, this was a simple physical way for drivers to prioritize efficiency. Economy mode could reduce aggressive acceleration and frequent downshifts, encouraging a calmer driving style. Over time, dedicated “E” positions became less common as modern engines and transmissions became more efficient and computer-controlled, automatically adjusting shift points without requiring a special gear position.

The idea behind the old “E” never really disappeared. Modern vehicles often offer Eco modes that electronically adjust things such as throttle response, transmission behavior, and air conditioning to improve efficiency. In electric cars, “E” can also relate to electric propulsion and features such as regenerative braking. The old gear position is mostly a thing of the past, but its basic purpose remains the same: using technology to help vehicles travel efficiently while consuming less energy.