Rift forming Big Oil OEMs

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【Summary】The automotive industry and Big Oil have traditionally been aligned, but a rift may be forming. EV sales are surging, with a 35% increase predicted for 2023, signaling a threat to Big Oil's profits.

FutureCar Staff Sep 04, 2023 12:00 AM PT

For many decades, the automotive industry has been closely linked 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 common stance on electric vehicles (EVs) for a while - viewing them as expensive, disruptive, and a threat to their profits.

However, the landscape has significantly changed in the past five years. The demand for EVs has been steadily increasing, and this trend shows no signs of slowing down. According to the International Energy Agency (IEA)'s Global EV Outlook 2023 report, unit sales of EVs are projected to rise by 35% from 2022.