Rift forming between Big Oil and OEMs

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【Summary】The automotive industry and Big Oil have traditionally been aligned, but a rift may be forming as electric vehicle (EV) sales surge. In the past, both industries saw EVs as expensive and disruptive, but now EV sales are projected to increase by 35% in 2023. This suggests a potential disagreement between Big Oil and original equipment manufacturers (OEMs).

FutureCar Staff Aug 30, 2023 4:46 PM PT

For many decades, the automotive industry has been closely linked to Big Oil. In the 1950s, these two industries collaborated to develop the road infrastructure in the United States and promote a reliance on private vehicles. Both industries shared a common perspective on electric vehicles (EVs) for a while - they were seen as expensive, disruptive, and a potential threat to profits. However, the landscape has significantly changed in the past five years.

EV sales have been rapidly increasing, defying previous expectations. According to the International Energy Agency (IEA)'s Global EV Outlook 2023 report, there is a projected 35% growth in unit sales from 2022. This surge in demand for EVs indicates a shift in consumer preferences and a growing acceptance of electric vehicles as a viable alternative to traditional gasoline-powered cars.