How does BinaryFormatter.Deserialize create new objects?

When BinaryFormatter deserializes a stream into objects, it appears to create new objects without calling constructors.

How is it doing this? And why? Is there anything else in .NET that does this?

Here's a demo:

[Serializable]
public class Car
{
    public static int constructionCount = 0;

    public Car()
    {
        constructionCount++;
    }
}

public class Test
{
    public static void Main(string[] args)
    {
        // Construct a car
        Car car1 = new Car();

        // Serialize and then deserialize to create a second, identical car
        MemoryStream stream = new MemoryStream();
        BinaryFormatter formatter = new BinaryFormatter();
        formatter.Serialize(stream, car1);
        stream.Seek(0, SeekOrigin.Begin);
        Car car2 = (Car)formatter.Deserialize(stream);

        // Wait, what happened?
        Console.WriteLine("Cars constructed: " + Car.constructionCount);
        if (car2 != null && car2 != car1)
        {
            Console.WriteLine("But there are actually two.");
        }
    }
}

Output:

Cars constructed: 1
But there are actually two.