Oil versus Automakers

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【Summary】Big Oil and OEMs (original equipment manufacturers) have historically been aligned in the automotive industry. However, a rift may be forming as EV sales surge and threaten profits.

FutureCar Staff Sep 03, 2023 9:48 AM PT

For many decades, the automotive industry and Big Oil have been closely interconnected. In the 1950s, these two industries collaborated to expand the road infrastructure in the United States and promote a reliance on private vehicles. They also shared a common stance on electric vehicles (EVs) for a while - considering them expensive, disruptive, and a potential threat to their profits. However, the dynamics have shifted significantly over the past five years.

There has been a remarkable surge in EV sales, defying the previous skepticism. According to the International Energy Agency (IEA)'s Global EV Outlook 2023 report, unit sales of EVs are projected to increase by 35% from 2022 onwards. This indicates a growing acceptance and demand for electric vehicles among consumers.