For drivers used to modern cars, a manual gear stick usually looks familiar, with numbers such as 1 through 5 and an R for reverse. But some older vehicles featured a mysterious “E” that could easily be mistaken for another gear. In many cases, the E stood for Economy, referring to a high-ratio gear designed for efficient cruising.

The purpose was simple: when the car was already traveling at a steady speed, selecting the E gear could lower the engine’s RPM. This allowed the engine to run more quietly and efficiently, potentially reducing fuel consumption. In that sense, it served a purpose similar to the tall top gear or overdrive found in many vehicles today.

However, the economy gear wasn’t intended for every situation. Starting from a stop, climbing steep hills, accelerating quickly, or carrying heavy loads required more engine torque. In those situations, a lower gear was usually more appropriate because it allowed the engine to operate in a stronger part of its power range.

So, the mysterious E wasn’t a special performance gear. It was essentially an efficiency-focused gear for relaxed cruising. While the markings and transmission designs varied between manufacturers and vehicles, the basic idea was to let the engine turn more slowly when the car was already moving comfortably—an early approach to improving fuel economy and reducing engine noise.