Exclusive: Yugo Is Trying To Make A Comeback With A New Cheap Car

It was a robust companion, an export success, and it will always put a big smile on your face: The Zastava Yugo, the Eastern European bargain-basement car that has advanced to cult status. The angular subcompact was launched on its home market almost 45 years ago, based on Fiat technology and assembled in the Zastava factory in Kragujevac. It was a hit on the domestic market and was subsequently exported, where it earned quite a bit of respect.

As readers of this site undoubtedly know, the Yugo even made it to the USA, and with a launch price of just $3,990 it significantly undercut all other cars on the market. There was a nicely designed convertible, and Zastava kept working on derivatives — though most of them never made it to dealers. The export success came to an abrupt end with the Yugoslavia War, but production eventually resumed. Two major facelifts followed, and though it left the U.S. market in 1992 the small car remained in production until 2008.

Throughout its production life, the Yugo was a symbol of basic mobility, but in recent years, it has become an icon of pop culture. There are books and screen appearances, one of them has been floating around Brooklyn — everyone recognizes the Yugo. Even in its home of the Balkans, its nostalgic transfiguration has set in.

Now there are plans for it to make a comeback, but as an entirely new vehicle. The first sketches of the new Yugo have just been released, a scale model is set to be unveiled this year, and you should mark the 2027 Belgrade Expo to see the full-scale, running prototype.

The project is the brainchild of Prof. Dr. Aleksandar Bjelić , a well-known name in the German automotive and supplier industry. He has secured the trademark rights internationally. Bjelić has been working in high-level marketing positions for almost two decades; an engineer and economist, he taught at the college in Aalen near Stuttgart and teaches economics at the University of Belgrade.

Initial funding for brand rights, concept and design is handled by himself, but we suspect development and investment partners are welcome.

Serbian designer Darko Marčeta is responsible for the design. With his first renderings, Marčeta has perfectly captured the proportions and essence of the classic Yugo; the retro-futuristic style is somewhat reminiscent of the Hyundai Ioniq 5 and the N74 concept.

But unlike those Korean cars, the Next Yugo will be positioned as an affordable entry-level car. The technical basis will be an established platform from a cooperation partner that Bjelić does not want to disclose yet. The car will meet all emissions and safety regulations, and it will be positioned at the lower end of the market, just like the initial Yugo.

While a fully electric version is conceivable, plans are for the new Yugo to be launched with combustion engines. That will keep it affordable and fun, while setting the new Yugo apart from other retro projects such as the new Renault 5 or the VW ID.Buzz.

Obviously, 2027 is a long time away, so next year Bjelić will launch a rally from Kragujevac across Africa to Mt. Kilimanjaro; it will be a rerun of a legendary expedition, conducted in 1975 with five Zastava 101 models, the predecessor of the Yugo.

This time, five classic Yugos will be brave the desert slopes, technically prepared specifically for the event. The drive is supposed to demonstrate the robustness of the original Yugo – and, more importantly, whet your appetite for the new model.

Obviously, these are just plans and there’s plenty of work between now and it becoming a reality. Still, I’ve always liked the Yugo (but then, one of my daily drivers is a Lada Niva). In an alternative timeline, the original Yugo could have replaced the Fiat 127/147. In a world of portly and expensive new EVs, filled to the brim with nanny systems and massive screens, I think a cheap and fun car like the new Yugo might be exactly what the world needs.