Large corporations are not stupid. They have decades of sales data. They can definitely predict demand a year in advance, and they do.<p>I don&#x27;t actually think they are overproducing. They make a huge markup on new cars, so having to discount a few that don&#x27;t sell isn&#x27;t a loss.<p>Also factories are pretty much large fixed costs. Overproducing actually doesn&#x27;t cost that much. The car might only cost $500 worth of raw materials, but the cost of the factories and infrastructure necessary to turn that into a car is massive.<p>&gt;(aka. no one wants to buy the last few carrots)<p>Which is literally only true for vegetables, not the economy in general. And you only need to sacrifice a handful of vegetables to for it, so it&#x27;s a fixed cost.