Rift forming Big Oil OEMs

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【Summary】Big Oil and OEMs (original equipment manufacturers) have traditionally worked together, but a rift may be forming. In the past, they collaborated on building road infrastructure and resisting electric vehicles (EVs). However, the landscape has shifted, with EV sales surging and projected to increase by 35% in 2023.

FutureCar Staff Aug 24, 2023 9:25 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 and promote a reliance on private vehicles. They also shared a common view on electric vehicles (EVs) for a while, seeing them as costly, disruptive, and a potential threat to their profits. However, the landscape has significantly changed in the past five years.

EV sales have been steadily rising, defying the earlier concerns of the automotive and oil industries. According to the International Energy Agency (IEA)'s Global EV Outlook 2023 report, there is a projected 35% increase in unit sales of EVs from 2022. This surge in sales indicates a growing demand and acceptance of EVs among consumers.