Bargain car that significantly undercut every other car on the US market is making a comeback

  • The super cheap Yugo is poised to make a return
  • Originally released in the 1980s the car cost just $3,900
  • Now, the car is set to be revived

Published on Feb 19, 2025 at 3:34 AM (UTC+4)
by Claire Reid

Last updated on Feb 19, 2025 at 4:43 PM (UTC+4)
Edited by Kate Bain

Remember the ultra-affordable Yugo? Well, it’s poised to make a comeback with a brand new super cheap car bearing its name. 

The Zastava Yugo was introduced back in 1980 with a production run that lasted until 2008. 

Originally made in former Yugoslavia – now Serbia – the car was launched into the American market in 1985 with a super low price tag of just $3,990. 

Now, the car is set to return with a new low-priced vehicle.

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The super cheap car previously had some success in the US

At the time it was launched, the Yugo seriously undercut virtually all cars available on the US market and it’s low price yielded some initial success. 

By 1992 – when Yugo America went bust – around 140,000 units were sold across the country.

However, the car wasn’t without its faults, and in the years following, it was dubbed ‘America’s most unreliable car’ due to numerous issues.

Ouch. 

Nonetheless, a few decades since its original release the little old Yugo has got quite the cult following both in the US and further afield.

So much so, that Professor Doctor Aleksandar Bjelić – a university professor that has links with the automotive industry in Germany – is working on a new project to revive it.

Now, the Yugo is set to rise from the dead

Every so often, we hear of an old favorite making a comeback – like the Toyota Celica or the Lamborghini Diablo.

Now, it seems its the turn of the Yugo, with Bjelić working closely with Serbian designer Darko Marčeta to produce a new vehicle, The Autopian reports. 

Newly released images show that the hatchback has had a modern facelift but has still held onto the boxy-look of the original. 

The initial designs are clean and modern-looking but definitely have a retro-feel.

As yet, the technical specifications are being kept under wraps, but it’s reported the car will be launched with a combustion engine and will, of course, comply with all emissions and safety regulations.

A scale model is set to be revealed later this year, with a working prototype tipped to be unveiled at the 2027 Belgrade Expo. 

Much like the 1980s original, the new model will come with a very reasonable price point.

So, this could be a car to look out for in the next few years.

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Claire Reid is a journalist who hails from the UK but is now living in New Zealand. She began her career after graduating with a degree in Journalism from Liverpool John Moore’s University and has more than a decade of experience, writing for both local newspapers and national news sites. Claire covers a wide variety of topics, with a special focus on cars, technology, planes, cryptocurrency, and luxury.