Rift forming Big Oil OEMs

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【Summary】Big Oil and the automotive industry have traditionally been aligned, but a rift may be forming. EV sales are surging and projected to increase by 35% in the coming year, challenging the profitability of traditional vehicles.

FutureCar Staff Aug 22, 2023 4:15 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 United States and promote a reliance on private vehicles. They were also in agreement about electric vehicles (EVs) for a while, as they were seen as expensive, disruptive, and a potential threat to profits. However, the landscape has significantly changed in the past five years.

Currently, the sales of EVs are experiencing a remarkable surge. According to the International Energy Agency (IEA)'s Global EV Outlook 2023 report, there is a projected 35% increase in unit sales from 2022. This indicates a growing demand for electric vehicles and a shift away from traditional gasoline-powered cars.