Rift forming Big Oil OEMs

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【Summary】Big Oil and automotive industry have historically been aligned, but a rift may be forming as EV sales surge, threatening profits. EVs are expected to see a 35% increase in unit sales by 2023.

FutureCar Staff Aug 31, 2023 7:01 AM PT

For many decades, the automotive industry has been closely connected to the Big Oil industry. Back in the 1950s, these two industries joined forces to develop the road infrastructure in the United States and encourage a reliance on private vehicles. Additionally, they both held the same stance on electric vehicles (EVs) for quite some time. EVs were seen as expensive, disruptive, and a potential threat to their profits.

However, over the past five years, significant changes have taken place. The demand for EVs has been steadily increasing, leading to a surge in sales. According to the International Energy Agency (IEA)'s Global EV Outlook 2023 report, there is a projected 35% increase in unit sales from 2022 onwards.