Rift forming between oil and automakers

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【Summary】The automotive industry and Big Oil have had a long-standing alliance, but a rift may be forming as electric vehicle (EV) sales surge. EVs were once seen as expensive and disruptive, but their increasing popularity is now a threat to profits. The International Energy Agency predicts a 35% increase in EV unit sales from 2022.

FutureCar Staff Aug 31, 2023 5:09 PM PT

For many decades, the automotive industry has been closely linked to Big Oil. In the 1950s, these two industries joined forces to develop the road infrastructure in the US and encourage a reliance on private vehicles. They were also in agreement about electric vehicles (EVs) for a while, seeing them as expensive, disruptive, and a threat to their profits.

However, the past five years have brought significant changes. The sales of EVs have been steadily increasing, and according to the International Energy Agency (IEA)'s Global EV Outlook 2023 report, there is a projected 35% growth in unit sales from 2022 onwards.