Rift forming Big Oil OEMs

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【Summary】The automotive industry and Big Oil have historically been aligned, but a rift may be forming. Both industries initially opposed electric vehicles, but EV sales have been increasing rapidly in recent years. The International Energy Agency predicts a 35% increase in EV unit sales from 2022. This suggests a shift in the relationship between Big Oil and OEMs.

FutureCar Staff Aug 25, 2023 9:27 AM PT

For many decades, the automotive industry and Big Oil have been closely linked. In the 1950s, these two industries joined forces to develop the road infrastructure in the United States, promoting a society heavily reliant on private vehicles. They were also aligned in their opposition to electric vehicles (EVs) for a long time, viewing them as expensive, disruptive, and a threat to their profits.

However, the landscape has significantly changed in the past five years. The demand for EVs has 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.