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It stands for 5th gear. I think it was a VW marketing ploy to show that the 5 speed car is Economical when using the "E" gear.
Drive a peg into the ground. Form a loop at both ends of a thin rope measuring 5 meters. Slip one looped end of the thin rope over the peg. Put a stick in the other loop and stretch the rope taut. Move the stick in a circle, keeping the rope taut, scoring a line on the ground with the end of the stick. Instead of a stick, a piece of chalk, or an aerosol can of paint could be used to mark the ground.
A yard stick is shorter than a meter stick by 3.37 inches (8.56 centimeters).
On a normal metre stick a centimetre, of which you would have 100.