Product Technology

Yugo brand returns: new retro hatchback for 2027

Posted on by Daisy
Yugo brand returns
09
May

The Yugo brand, once a symbol of Yugoslavia, will make a comeback in 2027. Originally launched by Zastava Automobiles in 1980 and produced until 2008, Yugo showcased a 1:5 scale model at the 2025 Automotive Design Show in Munich. Led by Serbian professor Aleksandar Bjelić and designer Darko Marčeta, the new Yugo will be a small hatchback combining ’80s style with modern design. Available in both gasoline and electric versions, it will be priced around \$15,000, aiming to offer an affordable electric car. The full prototype will debut at the 2027 Belgrade Expo. To promote the new model, the team plans to recreate the 1975 campaign by driving a classic Yugo from Kragujevac, Serbia, to Mount Kilimanjaro.

Yugo’s U.S. market attempt: low prices attract, high quality issues end

The Yugo entered the U.S. market in 1985 at a low price of \$3,990, making it the cheapest new car at the time. Despite strong sales, reaching nearly 50,000 units in 1987, its reputation declined due to quality and safety issues. Consumer Reports criticized its build and transmission, and poor crash test results hurt its market position. The breakup of Yugoslavia and 1992 UN sanctions halted Yugoslavia’s exports, causing the collapse of its U.S. dealer network and parts supply. Zastava continued producing Yugo models until 2008, after which Fiat took over the facility for future production.

Yugo brand revival: new three-door hatchback in 2027

The Yugo brand will return in 2027 with a new three-door hatchback. Led by German professor Aleksandar Bjelić and designer Darko Marčeta, the model will retain the original Yugo’s square design while adding modern features like slim LED lights, large alloy wheels, and hidden door handles. Aimed at the European B-segment, the car will initially be a three-door model, with a possible five-door version later. Priced under €15,000, ideally below €13,000, it aims to be one of the most affordable small cars. The car will use a partner’s technology platform, potentially based on Stellantis tech, and meet emissions and safety standards. Initially available in gasoline, an electric version may follow.

Daisy

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