"Oversupply is the result of decreased demand." Wrong.
We are talking low volumes here. Not millions or even tens of thousands. Viper sales are measured in many years and models by 100's.
Suppose you make 1000 cars. You have 1500 people wanting them. You sell every last one and have 500 people still wanting. Some of the 1000 have to pay a premium to get cars that the other 500 want.
More buyers than cars.
Now suppose that the next year you make 2500 of the cars. Suppose the demand goes UP and there are now 2000 people wanting the cars. You still have 500 extra, even with more demand. Some of the 2000 people get great bargains on the car because the dealer doesn't want it sitting around forever. The 500 cars left over now sit and have to be sold outside the original market. This requires great discounts or something else to create a market that didn't originally exist for these 500 cars.
More cars than buyers.
So, as you can see, oversupply can create a glut, even if demand goes up. The effect is more pronounced if the demand stays the same. Increases are also more prounounced in low volume/low demand cars like the Viper. Doubling production greatly overestimated the number of actual buyers.
Cris' analysis is dead on. And he is correct that demand for 01 and 02 years was less than 03 and 04.
We love the cars so we assume that the market is huge and that nearly everyone wants one. That just isn't true. I believe that the numbers sold in previous years were pretty close to the demand. All of the 03 model sold. (100%) Then production was bumped up too much. In our hearts, it hurts to think that not everyone likes the Viper, but when you look at the economic model it makes sense. You can also look at sales of not just the Gen III Viper, but also the older models. When you get ready to sell your used GenI, no matter how nice it is, there aren't 100 buyers waiting in line to buy it. If the original market had been much larger than the supply, there would still be large numbers of willing buyers.
I don't know how Dodge counts sales or what a dealer has to do to order a car, but someone else on here said that any dealer could have one, even without a buyer, and it didn't count as sold while being held by the dealer.
Dirk