The Zastava Yugo – once dubbed ‘the worst car in history’ – is set to make a comeback despite disappearing from the United States in the 1990s.
The ultra-affordable car was made in former Yugoslavia – now Serbia – and was launched in 1980.
It was introduced to the American market in 1985 with a super low price tag of just $3,990.
When it was launched, it undercut pretty much every other car available on the US market.
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As such, the car did have some initial success, but that was relatively short-lived, and it wasn’t long before the poor old Yugo earned itself the unenviable nickname of ‘the worst car in history’ and was dubbed ‘America’s most unreliable car’ due to numerous issues.
Ouch.
By 1992, Yugo America went bust, having sold around 140,000 units in the US.
However, the car is set to make a triumphant return with a brand-new model and an affordable price tag.
Whispers that the Yugo was set for a revamp began earlier this year, when it was revealed that Professor Doctor Aleksandar Bjelić – a university professor who has links with the automotive industry in Germany – had bought the rights to the name and was working on a new project to revive it.
Now, we’ve been given our first proper look at the revamped Yugo after a scale model of the new car was unveiled at the Car Design Event 2025.
The new Yugo has leaned heavily on the design of the original, but with a bit of a modern twist.
Much like the 1980s version, the two-door supermini has a boxy appearance.
The team behind the car says the two-door design isn’t a nod to the car’s heritage but instead ‘underscores the affordability and the sportiness of the new model’.
Bjelić and his team have confirmed that the new car will come with either a naturally aspirated or turbocharged combustion engine, but said an EV version could be possible.
As yet, Yugo hasn’t revealed a date for the car to go into production, but the team behind the vehicle said more details would be released in September this year.
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