According to the 1995 Tracer's Owner Guide (page 241): Overdrive is the usual driving position for an automatic overdrive transaxle(transmission). It works the same way D (Drive) works, AUTOMATICALLY upshifting or downshifting as the vehicle speeds or slows. However, Overdrive also shifts into a fourth gear (an overdrive gear) when your vehicle cruises at a consistent speed for any length of time (like on the Interstate). Overdrive will increase your fuel economy when you are traveling at cruise speeds (usually 50mph or higher). But, Overdrive may not be appropriate for certain terrain such as hilly or mountainous roads because the transaxle (transmission) automatically shifts back and forth between 3rd and 4th gears while doing this type of driving. Therefore, it is recommended if your car is continously climbing hills/mountains (which requires additional power) then you should shift to D (Drive).
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