Older cars sometimes featured an unusual **“E”** position on automatic transmission shifters alongside familiar settings such as “P” and “D.” In many vehicles from the 1980s and 1990s, “E” stood for **Economy**, reflecting an era when fuel efficiency was a major concern. Selecting it encouraged the transmission to shift into higher gears sooner and keep engine speeds lower.

Economy mode could make driving smoother and quieter while potentially reducing fuel consumption in suitable conditions. It also discouraged aggressive acceleration and frequent kick-down shifts, delivering power more gradually and encouraging a calmer driving style. Unlike today’s highly computerized vehicles, the driver made this choice directly through the physical gear lever.

Dedicated “E” positions have largely disappeared as modern engines and transmissions are designed for efficiency from the start. Computer-controlled systems can constantly adjust shift points, while many modern vehicles offer **Eco modes** that electronically manage throttle response, transmission behavior, air conditioning, and other functions. What once required moving a gear lever can now happen automatically in the background.

Interestingly, the letter **“E”** has taken on new associations in the electric-car era, where it can relate to electric propulsion, electronic controls, regenerative braking, or features such as e-Pedal driving. The old economy setting therefore represents a shift from mechanical control toward computerized efficiency. The technology has changed, but the basic goal remains the same: using energy more efficiently while getting the most from every journey.