Electric Cars Are Officially Keeping the Oil Industry up at Night

Even though electric vehicles still only account for a sliver of the global market, Big Oil is beginning to take them seriously as a long-term threat to the industry. While preserving a finite resource is still probably the way to go, oil companies are accustomed to making money and have now begun revising their forecasts to account for accelerated EV adoption.

Companies like Exxon Mobil and BP are ratcheting up their outlooks for the technology, anticipating slowing oil demand, while OPEC has quintupled its forecast for sales of EVs in the coming years.

Those vehicles should account for a reduced oil demand of roughly 8 million annual barrels by 2040. According to Bloomberg, that’s more than the current combined production of Iran and Iraq.

“The number of EVs on the road will have major implications for automakers, oil companies, electric utilities and others,” Colin McKerracher, head of advanced-transport analysis at Bloomberg New Energy Finance, wrote to clients. “There is significant disagreement on how fast adoption will be, and views are changing quickly.”

So quickly, in fact, that OPEC now believes EVs will account for almost a quarter of the global market in under 24 years. That’s 266 million vehicles, up from a scant 46 million it anticipated just a year ago.

If you’re wondering what’s causing the shifting projections from oil companies, it’s the newly concentrated effort from major manufacturers to incorporate electrification into their fleets.

Tesla is beginning production of the more-mainstream Model 3 this summer, Volvo is planning to place an electric motor in all of its vehicles within two years, Mercedes is shifting toward mild hybrids, Volkswagen is promising to be a cleaner, greener company by bringing more electrics to market, and nearly every company is coming out with a new EV as they simultaneously scale down the size of their internal combustion engines. That’s in addition to a growing network of charging stations and governments pushing for more aggressive emission regulations. It’s all working toward an increasingly electric and less oil-driven future.

This article originally appears at TheTruthAboutCars.com

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Equinox Diesel prices, Formula E electric-car racing, Renault Zoe, why China doesn't care: Today's Car News

Mercedes-Benz Generation EQ concept, 2016 Paris auto showToday, we’ve got coverage from the weekend’s Formula E race, some context on why China really doesn’t care what non-Chinese automakers think, and the latest sales figures for Europe’s best-selling electric car. All this and more on Green Car Reports. Over the weekend, we ran down the top green-car news stories of the previous week. We also covered…

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VW Will Start Throwing its Weight Around to Beat Tesla

With automakers rushing into the EV market like Forty-niners, they inevitably look towards Tesla.

Volkswagen is no exception to that trend and now Herbert Diess, VW’s CEO, says the automaker will be able to “stop” the current EV-leader because it has “abilities Tesla doesn’t have.”

Those abilities, for the record, are global scale and manufacturing expertise, which Diess describes as unmatched. And as the world’s largest automaker, there’s at least some credence to his argument.

Using that scale and manufacturing expertise, Diess not only hopes that VW will overtake Tesla, he intends for the people’s car to become the world’s leading EV maker.

To do that, they will need affordable cars. That will look like the I.D. concept, expected to arrive in 2019 or 2020.

Things look good for that car’s progress, too. Automotive News reports that the final design for the production version of the I.D. hatchback has been approved.

Apparently dubbed the Neo, VW’s first MEB-based car will cost roughly the same amount as the Golf TDI it hopes eventually to replace.

The I.D. will eventually be followed by a flurry of vehicles based on the same platform, including the Crozz, the Lounge (a large SUV designed to appeal to Americans), the Aero-e (a “sporty” four-door sedan), and the Buzz.

That’s not to say, though, that Diess is taking this lightly.

“We have to be careful,” he told Automotive News, “because we have a lot of work in front of us and the challenges that lie ahead are enormous.”

This article originally appears at AutoGuide.com.

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Lynk & Co to Sell Cars on Subscription

Upstart automaker Lynk & Co plans to offer subscription-based car sales.

The Chinese manufacturer revealed the information while talking to Auto Express about its newest model. That new car will be a crossover SUV, called the 02 Crossover. It will be the company’s second vehicle to market, following the 01 SUV.

Lynk is owned by Geely, the same Chinese company that owns Volvo.

“We’re launching in China this year and Europe and US in mid-2019,” said Lynk & Co Senior VP Alain Visser.

But Lynk won’t just offer conventional sales and leasing. The company is going to offer a subscription based sales model.

SEE ALSO: Geely’s Lynk Showing Off 03 and 01 Concepts at Shanghai Auto Show

“We will most of all sell mobility. So we’ll sell cars via a subscription model, where you pay a monthly fee and extend it or not, but within that fee you can change car every day or swap it whenever you want it,” said Visser.

The model lets you have a car for just a short period of time, or for a normal multi-year term. But during your term, it would allow you to share the car and recover some of your payment.

“You spend five days a month where the car is at the airport. For these five days you put your car on share, and for £20 ($26) a day you get £100 ($130) back,” said Visser.

Not only can the vehicle be shared, but Lynk & Co Chief Digital Officer David Green said that the owner can limit who can use the shared car. The owner could limit it to friends and family, or open to a more broad user base.

Green said that the company was in talks with property companies who could include a vehicle with an apartment building or complex, sharing one car between multiple units and including mobility with rent.

Auto Express

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