They most likely produce based on plant capacity and plant utilization. Before switching to a new model year, they need to cover fixed manufacturing costs, thus it's better to overproduce and discount leftovers, rather than slow/stop production of a model year if they are not at the time to begin a new production run. I suspect a very very large chunk of their unit costs in car production are fixed costs, thus, even a 20% off MSRP sale is going to be better than incurring those costs without capitalizing them into inventory
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