I live in the foot-hills of the large mountains in east Kentucky. I have noticed no loss of MPG in the mountains if I drive right. That means when I am going up a steep mountain, I gear it so my RPM stay below 2,000- more like 1,200 at times. Then when going down a steep mountain I often gear it to Neutral to coast for many miles while my engine idles around 900RPM or so. But I do gear-down a little for stops and some times gear down to keep from smoking my brakes when going too fast down from a mountain top. The key for me is to coast as much as I can without holding up any traffic- so far it seems to be working as my avg MPG is now going UP about 1/2MPG each day I drive it, but the car is still being broke-in from new.
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