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This is from GM Dealerworld:

- Cobalt
The Chevrolet Cobalt Marketing Team is excited to announce a significant fuel economy improvement on the 2008 Cobalt. Effective March 17, 2008 , any LS or 1LT Cobalt Coupe or Sedan model ordered with manual transmissions will get 36 miles per gallon on the highway. This three mile per gallon improvement now gives Cobalt the best in class manual transmission highway fuel economy.
To make these Cobalt models stand out a new badge has been added to the right side of the trunk lid labeled "XFE" (Xtra Fuel Economy).
Quick Answers Regarding Cobalt XFE
How do I order a Cobalt that gets 36 miles per gallon on the highway?
-Effective immediately, any LS or 1LT model coupe or sedan ordered with a manual transmission will get 36 miles per gallon highway.
With 36 MPG what competitors does this Cobalt beat in highway fuel economy? Just a few are:
-2008 Honda Civic 34 MPG
-2008 Ford Focus 35 MPG
-2009 Toyota Corolla 35 MPG
-2008 Mini Cooper S 34 MPG
-2008 Mazda3 32 MPG
-2008 Dodge Caliber 29 MPG
-2008 Honda Fit 34 MPG
-2008 Toyota Matrix 33 MPG
-2008 Nissan Sentra 33 MPG
-2008 Nissan Versa 33 MPG
Is there a special badge?
-Yes, there is all new XFE badge located on the right side of the trunk deck lid.
Is the Cobalt window sticker revised to reflect 36 MPG?
-Yes, starting with production on March 17, 2008 and after, LS & 1LT models with manual transmission will have a widow sticker that reads 36 MPG.
What does XFE stand for?
-Xtra Fuel Economy.
How did this improvement in fuel economy happen?
-Engine calibration, improved tires and a few other special items we don't want the competitors to know about..
Does this improved fuel economy apply to both Coupe & Sedan LS and 1LT manual transmission models?
-Yes.