Rift forming Big Oil OEMs

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【Summary】Big Oil and automakers have traditionally been aligned, but a rift may be forming as electric vehicle (EV) sales surge. The two industries once agreed that EVs were expensive and a threat to profits, but now EV sales are projected to increase by 35% in 2023.

FutureCar Staff Aug 26, 2023 9:42 AM PT

For many decades, the automotive industry has been closely connected 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 also shared a similar stance on electric vehicles (EVs) for a while, viewing them as costly, disruptive, and potentially harmful to their profits. However, the landscape has significantly changed over the past five years.

Currently, there is a remarkable surge in EV sales, indicating a shift in consumer preferences. 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. This data highlights a growing acceptance and demand for electric vehicles in the market.