When drivers selected Economy mode, the transmission changed how the car shifted gears.
Instead of allowing the engine to rev high before shifting, the transmission shifted earlier at lower RPMs.
The Result?
- Better fuel economy
- Lower engine strain
- Smoother highway driving
- Reduced fuel consumption
But there was also a downside.
Cars in “E” mode often felt slower and less responsive.
Acceleration became more sluggish because the car prioritized saving fuel instead of maximizing performance.
In many ways, it was the mechanical ancestor of today’s modern Eco Mode systems.
Why Did Economy Mode Exist?
To understand the “E” gear, you have to go back to the 1970s.
The oil crises of 1973 and 1979 completely changed the automotive industry.
Fuel prices skyrocketed.
Long gas station lines formed across America.
Suddenly, fuel economy became one of the biggest concerns for drivers everywhere.
Automakers scrambled to make vehicles more efficient.
The surprising history behind Economy mode — and why the mysterious “E” eventually disappeared from cars — continues on the next page.
The Rise of Fuel-Saving Technology
As fuel prices increased, manufacturers introduced:
- Smaller engines
- Lighter vehicle designs
- Overdrive transmissions
- Economy shifting systems
Companies like:
- Ford
- General Motors
- Honda
- Chrysler
experimented with Economy modes during the
late 1970s and early 1980s.
For many drivers back then, even small fuel savings mattered.
