Rift forming Big Oil OEMs

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【Summary】Big Oil and OEMs have historically been aligned, but a rift may be forming as EV sales surge and threaten profits. The automotive industry is increasingly embracing electric vehicles, indicating a potential shift away from traditional oil dependency.

FutureCar Staff Aug 29, 2023 6:42 AM PT

For many decades, the automotive industry has been closely linked to Big Oil. Back in the 1950s, these two industries joined forces to develop the road infrastructure in the United States and promote a car-dependent culture. They were also in agreement when it came to electric vehicles (EVs) - considering them expensive, disruptive, and a potential threat to their profits. However, the dynamics have shifted significantly in the past five years.

EV sales have been on a steady rise, defying the initial concerns. According to the International Energy Agency (IEA)'s Global EV Outlook 2023 report, unit sales of EVs are projected to increase by 35% from 2022 onwards. This surge in demand reflects a changing consumer mindset and a growing awareness of the benefits of electric vehicles.