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This investigation utilizes energy analysis and statistical methods to optimize step gear automatic transmissions gear selection for fuel consumption. A full factorial matrix of simulations using energy analysis was performed to determine the optimal number of gears and gear ratios that provide the best fuel consumption performance for a particular vehicle - engine application. The full factorial matrix setup as a design of experiment (DOE) was applied to five vehicle applications, each with two engines to examine the potential differences that variations in road load and engine characteristics might have on optimal transmission gearing selection. The transmission gearing options considered in the DOE were number of gears, launch gear ratio and top gear ratio. Final drive ratio was also included due to its global influence on vehicle performance and powertrain operating speeds and torque.