What the “E” on Older Car Gear Sticks Really Means — And Why It Was Designed to Save Fuel

In older cars, the “E” stood for “Economy,” a special driving mode designed to help improve fuel efficiency. Long before modern vehicles relied on advanced computer systems and automatic fuel-saving technology, automakers created simple mechanical solutions to help drivers reduce fuel consumption. When activated, Economy mode adjusted how the vehicle responded by lowering engine revolutions per minute (RPM), softening throttle response, and in some cases changing transmission shift timing. These adjustments helped engines operate more efficiently, especially during long-distance or steady-speed driving. Although drivers often noticed slower acceleration and less immediate power, many appreciated the trade-off because it reduced fuel usage and saved money over time.