Most People think that orange peel is a factory imperfection.The real reason shops knock orange peel is that they need to sand and buff to remove flaws in the paint. Sanding and buffing take away orange peel and gives shops one last chance to get out little imperfections; such as dirt, a run, a fisheye, or to touch up a chip they made while assembling the car.
New car manufacturers start with brand-new metal and their paint rooms are pristine and near surgically clean, so the paint is applied in perfect conditions. Even so, most new car finishes dry with a slight bit of orange peel. Orange peel is the result of how the painter applied the paint and the environment in which the paint dried, and while it’s factory-correct (even among high-end cars like Porsches and Ferraris), it does tend to diminish some of the shine in the paint. In the case of a high-end custom paint job, the process of color sanding and buffing with a compound is done to eliminate all traces of orange peel and create a mile-deep, super-smooth paint job. But that is very time-consuming and therefore expensive, even for the luxury and high-end automakers.