Rift forming Big Oil OEMs

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【Summary】The automotive industry and Big Oil may be experiencing a rift as electric vehicle (EV) sales surge. In the past, both industries were aligned in their opposition to EVs, but the landscape has changed in the last five years. The International Energy Agency predicts a 35% increase in EV unit sales from 2022, suggesting a potential shift in the relationship between Big Oil and original equipment manufacturers (OEMs).

FutureCar Staff Sep 02, 2023 9:43 AM PT

For many decades, the automotive industry and Big Oil have been closely linked. In the 1950s, these two industries worked together to develop the road infrastructure in the US and promote a reliance on private vehicles. They also shared a common view on electric vehicles (EVs) for a long time - they were seen as expensive, disruptive, and a threat to profits.

However, the landscape has drastically changed in the past five years. EV sales have been on the rise, defying the earlier beliefs held by 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 from 2022.