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 as electric vehicle (EV) sales surge. EVs were once seen as expensive and disruptive to profits, but now they are experiencing a 35% increase in unit sales, according to the IEA's Global EV Outlook 2023 report.

FutureCar Staff Aug 22, 2023 11:15 PM PT

For many decades, the automotive industry has been closely connected to Big Oil. In the 1950s, these two industries joined forces to expand the road infrastructure in the United States and promote a culture that heavily relied on private vehicles. They also shared the same perspective on electric vehicles (EVs) for a considerable period of time. Both industries saw EVs as expensive, disruptive, and a potential threat to their profits.

However, the landscape has significantly changed in the past five years. The demand for EVs has been steadily increasing, and this trend shows no signs of slowing down. According to the International Energy Agency (IEA)'s Global EV Outlook 2023 report, there is a projected 35% growth in unit sales of EVs compared to the previous year.