Rift forming between Big Oil and OEMs

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【Summary】The automotive industry and Big Oil have historically been aligned, but a rift is forming as electric vehicle (EV) sales surge. The two industries used to agree that EVs were expensive and disruptive, but the landscape has changed in the last five years. EV sales are projected to increase by 35% according to the IEA's Global EV Outlook 2023 report.

FutureCar Staff Aug 22, 2023 6:15 AM PT

For many decades, the automotive industry and Big Oil have been closely linked. In the 1950s, these industries joined forces to develop 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, viewing them as expensive, disruptive, and a potential threat to their profits.

However, the past five years have brought significant changes. The demand for EVs has been steadily increasing, and according to the International Energy Agency (IEA)'s Global EV Outlook 2023 report, unit sales are projected to rise by 35% from 2022 onwards.