Overview: What the “E” Stands For
The “E” on gear selectors of late-1970s through mid-1980s vehicles stands for Economy. Introduced by domestic and Japanese automakers following the 1970s oil crises, it served as a mechanical predecessor to modern electronic drive modes.Vehicles
Mechanical Operation vs. Modern Eco Mode
Feature Vintage “E” (Economy) Gear Position Modern “Eco Mode” Dashboard Setting
Control System Hydraulic / Mechanical valve body adjustment Electronic Control Unit (ECU) software
Shift Strategy Upshifts at lower RPMs; engages overdrive earlier Adjusts shift logic, throttle response, & HVAC load
Driving Feel Reduced acceleration responsiveness Smoother, less sensitive throttle pedal feel
Activation Physical gear shift lever selection Dashboard button, touchscreen, or dial selector
Why the “E” Position Disappeared
Computerized Transmissions: Electronic transmission control units (TCUs) made rigid mechanical shift settings obsolete by continuously optimizing shift points based on real-time driving conditions.
Standard Overdrive: High-ratio overdrive gears became standard across all automatic transmissions rather than being an optional or selectable mode.
Driver Misunderstanding: Many motorists were confused by the designation or found the sluggish acceleration inconvenient for urban merging and climbing hills.
Usage Recommendations for Older Vehicles
When to Use “E”: Steady-speed highway cruising on flat, open roads.
When to Use Standard “D”: Stop-and-go city traffic, merging onto highways, towing, or driving on steep inclines.