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

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

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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.

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Vidframe Min Bottom

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.

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2027 Yugo Brand Drawing 2 Large
Credit: Yugo Brand

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.

2027 Yugo Brand Drawing 3 Large
Credit: Yugo Brand

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

2027 Yugo Color Drawing Large
Credit: Yugo Brand
2027 Yugo Brand Drawing Large
Credit: Yugo Brand

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.

2027 Yugo Color Black White Large
Credit: Yugo Brand

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.

2027 Yugo Color Black Yellow Large
Credit: Yugo Brand

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.

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Image: Yugo Brand
Screen Shot 2025 02 17 At 4.17.07 Am
Image: Yugo brand
Screen Shot 2025 02 17 At 4.17.30 Am
Image: Yugo brand

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.

Screen Shot 2025 02 17 At 4.16.43 Am
Image: Yugo brand

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.

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Huja Shaw
Huja Shaw
2 days ago

If record albums, flip phones, and film cameras can make a comeback, why not a Yugo?

Baltimore Paul
Baltimore Paul
2 days ago

Does anyone know about OKA auto? In the late 90s early 00s someone talked about importing them. Do you know what happened?

Dodsworth
Dodsworth
2 days ago

This rendering looks good because one person designed it. Wait until the committee tweaks it. Seriously charming as presented.

Rod Millington
Rod Millington
2 days ago

Honey, I shrunk the Ioniq 5?

Urban Runabout
Urban Runabout
2 days ago

I’m here for the cheap car from Mexico:
https://www.youtube.com/watch?v=F02P2JO7yfc

HowintheNameofZeus
HowintheNameofZeus
2 days ago

I’ll take one. Especially if they can get Samuel L. Jackson to put a gold bar in the back seat.

Eric Gonzalez
Eric Gonzalez
3 days ago

The concept drawings look amazing save for the very high belt line. I’d increase window area.

Could this be my next cheap commuter?

Alec Weinstein
Alec Weinstein
3 days ago

If this winds up being a decent platform a la Neon I’m gonna be hyped

M SV
M SV
3 days ago

It looks similar to a Dacia spring with more style to me. Perhaps importing Chinese components to an eastern European factory will produce a ok car for an ok price. It seems like EVs are going to kei car route 4 door box maybe egg shaped for efficiency. Tiny cars bring alot of people joy and seem the natural good ev.

Comet_65cali
Comet_65cali
3 days ago

I somehow feel that like, Yugo, would work as a rebranded, generic “NEW ENERGY VEHICLE” from China.

They’ll put any logo on a generic POS.

M SV
M SV
3 days ago
Reply to  Comet_65cali

If / after they fail to get capital and build it. The person or company that by the IP will for sure do this. Wuling mini with a weird front end now yugo

Drive By Commenter
Drive By Commenter
3 days ago

Needs stilts to have a chance. A smallish hatch on stilts, aka CUV, with AWD and decent fuel economy would print money.

Damon Oresky
Damon Oresky
3 days ago

I grew up in Detroit and one local Caddy dealer was giving away a FREE Yugo when you bought one of their land yachts. Man those were the days!

Saul Goodman
Saul Goodman
2 days ago
Reply to  Damon Oresky

I believe that a Mitsubishi dealer used to do this. If you bought one of their SUVs, they’d throw in a mirage for free. Can’t remember which dealer though.

Last edited 2 days ago by Saul Goodman
Industrial_design_guy
Industrial_design_guy
3 days ago

Looks like an Ioniq 5 to me

Col Lingus
Col Lingus
3 days ago

So Dodge and Yugo teamed up to badge engineer the pos Hornet?

Fool me once…

Andrea Petersen
Andrea Petersen
3 days ago

Considering how everyone is pretty much maxed out financially and starting to get irritated with in-car tech, I recon this thing could have a chance! Granted, I’m not sure how well it’s going to slide on nostalgia though. With Fiat and Mini, they can play with a little bit of spunky charm in their history. While lots of people talked trash back in the day, there were also lots of people who actively enjoyed their Fiats and Minis. Trying to find people outside of the eastern bloc (and probably within) who actively enjoyed their original Yugo is a bit more difficult. It’s retro, sure, but it will need to find the fun and charm that it never really had in the first place.

Ranwhenparked
Ranwhenparked
2 days ago

A lot of what’s going on right now actually feels similar to the market conditions in the mid 1980s that allowed for Yugo of America to get off the ground in the first place. Higher interest rates, Japanese and American automakers pushing upmarket away from entry level niches, feature bloat in the form of option packages making it harder to order cheaper versions, growing customer dissatisfaction of higher prices

DDayJ
DDayJ
3 days ago

I cannot wait to see these in 15 years pitted against a Mitsubishi Mirage in some Top Gear Challenge reboot. In all seriousness if you’re looking for a good read check out Jason Vuic’s book on the history of the Yugo. Fun, fast, and interesting for the typical Autopian.

Drive By Commenter
Drive By Commenter
3 days ago
Reply to  DDayJ

More like YouTuber challenge. I’ll be here for it!

3WiperB
3WiperB
3 days ago

Will it have a standard window defroster to keep your hands warm while you push it?

Will the dealerships be at the top of hills so you can’t bring it back?

Frobozz
Frobozz
3 days ago
Reply to  3WiperB

Will you be able to double the resale value by topping off the tank?

Will you ask for a set of wipers for your Yugo and be told, “Sure, that’s a fair trade?”

3WiperB
3WiperB
3 days ago
Reply to  Frobozz

Does your insurance total the car if you get a flat tire?

Manwich Sandwich
Manwich Sandwich
3 days ago

The only way I see this coming back as a truly cheap/basic car is with the help of state sponsorship/funding… just like the original.

If it’s left to private companies, they will cynically use the nostaglia to boost the price and profit margins.

That’s what happened with VW and the ‘New Beetle’. And that’s the case with the “ID Buzz”. That also has been the case with the BMW Mini and the new incarnations of the Fiat 500.

Also about the concept drawings… like so many concept drawings I see, the wheels are too big and the tire sidewalls are too small. Yet another designer that is taking the lazy approach to making their design look interesting.

Maymar
Maymar
3 days ago

Hey, to the 500’s credit, it was genuinely a reasonably priced car (launched at base price $16k CAD, which is less than my base Mazda2 was), at least so long as you avoided too many options or special editions. Small, cramped, and kind of unreliable, but not excessively priced.

For that matter, the new Renault 4 and 5 seem pretty modestly priced, at least by the standards of small EV’s.

Last edited 3 days ago by Maymar
Jack Beckman
Jack Beckman
3 days ago

“Launched” and “Yugo” conjure up different memories in Michigan:

“On Sept. 22, 1989, a Yugo compact car went over the railing. A police report of the incident estimated that the vehicle was traveling at more than 60 mph. While wind could have been a contributing factor, it did not blow the vehicle off the bridge.”

So says the Mackinac Bridge Authority. A Bronco also went off in ’97 but that was on purpose (a suicide) where the Yugo supposedly wasn’t. Although one could argue that doing 60 MPH in a Yugo on a windy bridge might be suicide.

Saul Goodman
Saul Goodman
3 days ago
Reply to  Jack Beckman

“Later investigation showed the driver lost control due to excessive speed and her vehicle bumped the bridge’s 4-inch-high median and then crossed back through the northbound lanes, hitting a curb, jumping an outer guardrail and falling off the bridge”

I’m also pretty sure the bridge had guardrails that were too short and out of spec.

AlterId is disillusioned, but still hallucinating
AlterId is disillusioned, but still hallucinating
3 days ago
Reply to  Jack Beckman

Suicide by crap.

Greg Winson
Greg Winson
3 days ago

The new Yugo will be perfect for students needing a cheap base for art projects around 2037, just like the first Yugos. https://www.youtube.com/watch?v=j2U6ztoln4w

Geekycop .
Geekycop .
3 days ago
Reply to  Greg Winson

I remember that. The piano one in particular stood out as a kid.

JDE
JDE
3 days ago

i am not sure how many are nostalgic enough to go for one of these. Certainly the drawings look pretty decent in a Golf GTi kind of way, but even hot hatches are pretty much gone for most Americans.

Yugo would struggle mightily to get all the New Traffic Safety crap into one cheaply and also make sure it all works.

I suppose if Stellantis could allow them to take the 500X with both the hybrid and NA drivetrains then Yugo could perhaps rebody it and make an attempt at seriously re-entering this market, but I would be surprised if they could do it.

Jeff Elliott
Jeff Elliott
3 days ago

It looks like a 2 door hot hatch, even if it’s on the slower side it could be fun with a manual and decent handling.

Urban Runabout
Urban Runabout
3 days ago

So it’s basically an Eastern-European two-door Rivian R3 with hockey-stick headlamps?

I think I’d rather just have a two-door Rivian R3.

Last edited 3 days ago by Urban Runabout
JunkerDave
JunkerDave
3 days ago
Reply to  Urban Runabout

I doubt that any 2-door Rivian R3 sold for that price will be in operating condition.

Der Foo
Der Foo
3 days ago

If I had to guess, the pesky war was a merciful end to the Yugo here in the US. Unlike the Koreans that had money backing and an actual desire to improve, the Yugo would have eventually run it course and people would have had enough. Yeah, it’s cheap, but you can only eat so many shit sandwiches before you can’t take another one.

Cheap Bastard
Cheap Bastard
3 days ago
Reply to  Der Foo

“Yeah, it’s cheap, but you can only eat so many shit sandwiches before you can’t take another one.”

The American RV industry proves Americans are perfectly willing to throw down insane amounts of money for absolute garbage year after year after year so why not on this too? They might whine and grumble but they still keep bending over for big RV.

Besides those RV buyers need SOMETHING smaller and comparatively fuel efficient to pull behind those RVs amIrite? What better to compliment a shitty RV than a cheap, shitty Yugo?

Manwich Sandwich
Manwich Sandwich
3 days ago
Reply to  Der Foo

 but you can only eat so many shit sandwiches before you can’t take another one.”

I have this freshly made shit sandwich here for you… do you want it? It’s CHEAP! Half the price of the cheapest hamburger! It even comes with a slice of processed cheese! How can you resist?

Der Foo
Der Foo
3 days ago

With bacon?

Manwich Sandwich
Manwich Sandwich
2 days ago
Reply to  Der Foo

Absolutely!

Data
Data
2 days ago

Applewood smoked?

Last edited 2 days ago by Data
Manwich Sandwich
Manwich Sandwich
1 day ago
Reply to  Data

“Applewood smoked?”

Is there any other kind?

Tagarito
Tagarito
2 days ago

Definitely lining up for the cheese alone. Hope it’s the presliced processed cheese and not the spreadable kind.

Also I thought I saw a mouthwatering thick fender to c pillar door moulding in the last concept photo, the red example above.

Ranwhenparked
Ranwhenparked
2 days ago
Reply to  Der Foo

Yugo of America had gone bankrupt and was bailed out by the Yugoslavian government, they were rolling out improvements to interior trim, paint finish, equipment levels, and had just barely introduced an automatic transmission option, with fuel injection to follow. There were serious plans to try and update and improve the car for the 1990s that would have made them at least somewhat better than the earlier examples

Saul Goodman
Saul Goodman
2 days ago
Reply to  Ranwhenparked

I also believed Zastava was working on the Florida (model,) which would’ve been more upscale.

Ranwhenparked
Ranwhenparked
2 days ago
Reply to  Saul Goodman

We definitely would have gotten the Florida, it had already launched in Yugoslavia in 1988 and was developed with the US in mind, was an all-new design with Italdesign styling. By that point, Malcolm Bricklin was starting to feel that Zastava’s wholesale pricing was leaving too little profit margin, so he used stalling tactics on the Florida while pursing alternate options with Dacia and Proton. Once he was out of the picture and the Yugoslavians were in control, a US launch of the Florida was very much on the table, they just ran out of time.

Matt Sexton
Matt Sexton
2 days ago
Reply to  Ranwhenparked

Bricklin was so far along on the Proton that five U.S.-spec examples were built and they had achieved certification. I actually have a Proton USA launch press kit that I found on eBay a few years ago.

Matt Sexton
Matt Sexton
2 days ago
Reply to  Ranwhenparked

The 1990 and 1991 models imported to the U.S. had fuel injection and a five-speed transmission. I have one. By all accounts it was a much improved car but the rep was so bad at that point. It didn’t matter because the war made production very difficult.

GhosnInABox
GhosnInABox
3 days ago

Just as the Spider-verse foretold…

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