supply v. demand doesn’t work since MSRP was set by the manufacturer. Market didn’t decide the price.
Oh but they did! Car manufacturers are some of the most prolific users of surveys and focus groups to determine interest level in future cars. They have a general idea by the time they go to market what kind of demand they expect to see. Naturally, sometimes they err on either side of the equation. But by and large, they are pretty good at gauging demand. Sometimes, undersupply is a calculated approach (see below).
The other is that if hatches are in demand why not make more of it, instead of trying to squeeze the profit?
This is business 101. It costs money to make more of them. One upside of increased volume is the reduction in piece prices. However, many of these are determined well in advance and contracted at the estimated volumes so you have to renegotiate with your vendors who may not be all that willing to reduce their prices based on your updated volume. The downsides are many; increased labor costs, diversion from other lines, increased capital investment etc. Maximizing the production volume without adding any additional expense if the best option for them.
This happens in all kinds of businesses. Look at the electric company. Have you ever wondered why in the world they would push energy conservation? They make money when you use energy! The key is to maximize profits without having to build more infrastructure. If they can raise rates to encourage conservation and not have to build more expensive power plants that take decades to become profitable, it’s a win-win for them and they look good doing it!
There is another thing to consider. There is value in shortage. People are funny this way, when they want something, they will want it all the more if it is popular and in short supply. If you oversaturate the market, people lose interest because everyone has one…