Rift forming Big Oil OEMs

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【Summary】Big Oil and the automotive industry have historically been aligned, but a rift may be forming. EV sales are surging, with a 35% increase in unit sales predicted for 2023. This shift poses a threat to Big Oil's profits and signifies a changing relationship between the two industries.

FutureCar Staff Sep 03, 2023 4:34 PM PT

For many decades, the automotive industry has been closely connected to Big Oil. In the 1950s, these two industries collaborated 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 expensive, disruptive, and a potential threat to their profits.

However, the landscape has significantly changed in the past five years. The sales of EVs have been consistently increasing, and according to the International Energy Agency (IEA)'s Global EV Outlook 2023 report, there is a projected 35% rise in unit sales from 2022 onwards.