Rift forming between Big Oil and OEMs

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【Summary】Big Oil and automotive industry used to be allies, but a rift may be forming as EV sales surge, posing a threat to profits. EV sales are expected to increase by 35% from 2022, according to the IEA.

FutureCar Staff Aug 28, 2023 11:37 PM PT

For many decades, the automotive industry has been closely connected to Big Oil. Initially, in the 1950s, these two industries joined forces to expand the road infrastructure in the United States and encourage a society heavily reliant on private vehicles. Both industries also shared concerns about electric vehicles (EVs) as they were seen as expensive, disruptive, and potentially harmful to their profits.

However, the landscape has significantly changed in recent years. The demand for EVs has been steadily rising, with sales reaching unprecedented levels. According to the International Energy Agency (IEA)'s Global EV Outlook 2023 report, it is projected that unit sales of EVs will increase by 35% from 2022 onwards.