There are plenty of terrible cars from years gone by – too many to name, in fact.
But few garnered a reputation quite as bad as one particularly infamous 1980s motor produced in former Yugoslavia that became Britain’s cheapest car of the decade.
While thousands were sold in the UK, it has gone down in folklore as the ‘worst car in history’. In fact, there’s a book dedicated to its flawed past.
Though not everyone agrees. Certainly not Dr Aleksandar Bjelić, the man who plans to revive the name for the 21st century.
Bjelić, a professor with a 20-years background in the automotive sector, is steering – and funding – the relaunch of the Yugo.
In an exclusive interview with This is Money, he explains what the future looks like for the reborn brand, how he intends to bring six cars to market – including a roadster and SUV – and why the original 1980s Yugo wasn’t as bad as many try to make out…
Dr Aleksandar Bjelić is the man who plans to revive the Yugo name for the 21st century. We exclusively spoke to him about his ambitions
The Yugo 45 originally entered the UK market in 1981 as a rebodied Fiat 127 with a simple box shape penned by famed styling house ItalDesign and an incredibly crude cabin short of luxuries.
Under the bonnet was a choice of three Fiat petrol engines, all modest capacities from 903cc to 1,301cc. It even sold a ‘convertible’ variant with a power roof.
And it was seriously cheap.
By the time UK imports ceased in 1991 due to the outbreak of the Yugoslav civil war, the Eastern Bloc car was being sold new for just £2,795 – that’s the equivalent of just £8,600 in 2025 respective of inflation.
At the height of its popularity, around 3,000 Yugos were sold in the UK per year. But few survive today due to catastrophic rust.
In fact, by 2018, official registrations data suggested that the thousands once owned had plummeted to a mere 19 on the road.
Half a decade later, UK numbers dwindled to just nine.
And today, we have it on good authority that only two Yugo 45s have endured.
The Yugoslavian Yugo 45 debuted on the UK market in 1981 as a rebodied Fiat 127 with a simple box shape penned by famed styling house ItalDesign
The Yugo was available with a choice of three petrol options of varying capacity from 903cc to 1,301cc. It even sold as a ‘convertible’ variant (pictured) with a power roof
A total of 794,428 Yugos were produced for the global market. However, only a fraction of these were sold in Britain
The Yugo also made it across the Atlantic to the US, where 142,000 were purchased between 1985 and 1992.
Costing just $4,000, it was instantly renowned for being poorly engineered, ugly, and rudimentary.
Long before Yugos stopped being imported into America, it had become the butt of every automotive joke, like: ‘Why do Yugo’s have a heater for the back window? To keep your hands warm when pushing it.’
Jason Vuic’s 2010 book ‘The Yugo: The Rise and Fall of the Worst Car in History’, explains: ‘Six months after its American introduction in 1985, the Yugo had become a punch line; within a year, it was a staple of late-night comedy.’
The Eastern Bloc product cost as little as £2,795 by the time imports ceased in 1991 when the Yugoslav civil war broke out, making it by far the least expensive new car sold in Britain at the time
We have it on good authority that only two Yugo 45s remain in Britain today, which is mostly down to the original cars suffering catastrophic rust
The Zastava car factory in the central Serbian town of Kragujevac, some 75 miles from the capital Belgrade, was heavily damaged during NATO air strikes in 1999
In 1999, during NATO’s bombing of Yugoslavia, the Zastava car factory in Kragujevac, where Yugo cars were produced, was targeted and damaged, though not completely destroyed.
Incredibly, Yugo continued to be produced for the domestic market in Serbia under the name Zastava Koral some 17 years after it was pulled from the UK. The final model rolled off the Serbian assembly line on 21 November 2008.
A decade later, Group Zastava Vehicles and its subsidiaries entered a bankruptcy procedure.
But Yugo is set to embark on a dramatic return as an affordable three-door model under the reborn name Yugo Automobile, which is spearheaded by Dr. Aleksandar Bjelić, a German professor of Serbian descent.
His concept Yugo Siaj caused a global stir when it debuted as a 1:5 scale model earlier this month at the Car Design Event in Munich – which you can read more about here.
This is Money spoke exclusively to Dr Aleksandar Bjelić following the unveiling to discuss his passion for Yugo, his plans to revive it, and why he believes the original car wasn’t as bad as many think…
Yugo is set to return under the stewardship of Dr Aleksandar Bjelić, a German university professor of Serbian descent who is taking it upon himself to revive the name
Q&A with Dr. Aleksandar Bjelić, CEO Yugo Automobile
Tell us more about yourself?
I’m 50 years old, born in Germany where I also live, but throughout my professional career I’ve had the chance to live in the US and Switzerland. I’m married and have two daughters.
I studied international technical sales and have a PhD in Risk Management in Contemporary Organisations.
I’ve lectured at the University of Aalen in Germany and Belgrade, Serbia, and specialise in sales, marketing, business development, foreign (trade-) markets, international businesses, and entrepreneurship.
What background do you have in the automotive sector?
Globo GmbH, the oldest car care brand worldwide, is one of the companies within my holding.
My automotive background comes from more than 20 active years in several national and international management stations in the automotive sector, at ZF, Bosch, Behr and others.
I have developed a strong network within OEMs and Tiers 1s. These provide lots of valuable input and advice for my Yugo project.
Beside the business-related issues, I’m a car collector, classic and sportscar driver and racer, active member in several automobile clubs and representative of FIVA, the global classic car federation.
Bjelić debuted a 1:5-scale vision of the reborn Yugo at the Car Design Event 2025 in Munich, hosted between 6-8 May
Alongside Serbian designer Darko Marčeta, the pair showcased how the eighties-inspired supermini might look – and it’s a significant departure from the Yugo Britons will know…
Does the original Yugo have a special place in your heart?
Of course. Otherwise, I wouldn’t go on such a crazy journey with the new Yugo.
The first Yugo reminds me of my childhood. When I had been in Yugoslavia with my parents, most of my relatives had a Yugo or a Zastava.
My first driving experiences were in an old Yugo 45 from my uncle in Serbia at the age of 13. I assume that was the start of my passion as a petrol head.
What is special about the Yugo name and why do you want to bring it back?
What’s special about the name Yugo is its origins. Most of the people think ‘Yugo’ derives from the name Yugoslavia. However, this is untrue. The very first models were called Jugo with a ‘J’ because it was named after the warm and humid Adriatic wind that blows from the south.
The Yugo name is important to me because it was a home-made car, created by the Yugoslavians and with parts from all over the country.
Furthermore, Yugo had the same intention as Ford with the Model T and Volkswagen with the Beetle: to create a car for everyone.
Darko Marčeta’s design vision for a reborn Yugo was unveiled in February, with the company preparing to create a full-scale prototype in the next 12 months
The first Yugo will be called the Siaj and is an affordable three-door supermini. But more Yugos will follow…
The Yugo earned the moniker the ‘worst car in history’. Do you think this is fair and is your aim to repair its reputation?
The first Yugo received the title ‘the worst car in history’ from the Americans.
Nevertheless, you have to take into consideration that in 1985, when Yugo was exported to the US for the first time, it has been the most imported car of all brands in that year.
Nowadays, the Yugo has a very strong fan base and an iconic status. Therefore, there is no need to repair the reputation as it was not as bad as many Americans described it.
You also have to consider its price of $3,990. Cars twice the price of the Yugo were no worse and certainly no better.
You have enlisted the help of vehicle designer Darko Marčeta. Is it important that a Serbian is penning the new Yugo?
Darko has previously designed multi-functional armoured vehicles. It is not important that the designer is Serbian or former Yugoslavian or any other nationality. What’s important is that he’s good and understands what the requirements of the new Yugo are.
But I must admit, it is lovely to see how engaged and involved a person from ex-Yugoslavia is when it comes to the new Yugo – and this is an important factor as well, of course.
We are currently a small team of just seven people, including Darko and myself. However, we have several advisors and mentors who support us. The company is based in Germany, but we will soon open a subsidiary in Serbia.
Currently, I’m funding the project.
Bjelić says it will initially be sold as an ‘affordable’ three-door hatchback, though with the potential for ‘different body versions’ to follow
To keep costs down, it aims to debut with a petrol engine and choice of manual or automatic gearboxes. However, Yugo Automobile also says ‘electrified versions are possible’
What will the first Yugo be called?
The name of the first model of the new Yugo brand – a small three-door hatchback – is Siaj.
This is a combination of the first letters of the names of my children: Saleena Isabella and Alisa Jasmin.
In the international language of Esperanto, Siaj also means ‘to be’.
Who is the new Yugo aimed at? Is it older motorists who remember the original Yugo or younger drivers wanting cheap motoring?
I think this will be a mixture between the younger and older generation. The older ones who remember the first Yugo with that nostalgic touch and the younger ones looking for an affordable driving machine which is fun.
The size of the car is also an attribute that will cater for both.
Where will Yugos be sold?
We see Yugo being available in all relevant markets where brands like Dacia and Fiat are currently sold.
Of course, due to the history, markets in the former Yugoslavia and the Balkans will be a strong focus, but not exclusively.
Given the poor reputation of the original Yugo in America, will it also be available there?
If I was the only decision maker, I would definitely target the US.
Despite Yugo’s bad reputation and jokes about the car in the past, the fanbase in America is growing and growing – I follow several US car meets and am part of communities and can see this happening.
I will give my recommendation to launch in the US because the market size is huge and there is room for a small car for the US market, but this [decision] is not entirely depending on myself.
The fully working prototype that’s been promised in two years’ time will be showcased at the Belgrade Expo 2027
Bjelić says he is seeking an automotive ‘cooperation partner’ to turn the concept into reality to produce it on a borrowed platform
You have said that you hope to unveil a full-scale prototype at the Belgrade Expo in 2027. Will this be a running prototype with an engine?
That’s not only a hope. It is a fact. We will present in 2027 a running prototype with a four-cylinder combustion engine. The team already started the work.
The engine and drivetrain is provided by a partner, which I cannot name yet.
When do you hope the first production car could be launched?
We are currently looking for a ‘cooperation partner’ to manufacture the Siaj. So, it will depend on when we secure an OEM for series production. If the right partner can be found at the latest by 2027, then manufacturing might start in 2028/2029.
Speaking at the Munich car design event, Bjelić said the mission for the Siaj is to ‘preserve the heritage of the old Yugo and create a design to bring the next Yugo into the future’
The boss of the relaunched Yugo name said he wants to create something older drivers instantly recognise
The Yugo Siaj will be similar in dimension to a Ford Fiesta. The concept model is a three-door – keeping true to the original
What engine do you think would best suit the Yugo Siaj?
The prototype will use a four-cylinder engine, and we want the production model to have a choice of a 120hp 1.2-litre unit or a 150hp 1.4-litre motor.
In my opinion, this is the best option for such a passenger vehicle of compact size and weight. It has potential for a pocket rocket.
How much do you expect the Yugo Siaj to cost when it does launch?
The target is to be below €20,000 (£17,000). This is a must, otherwise the philosophy behind the Yugo would fail.
It will be an entry level model but with all the major needs of a modern car, such as keyless entry, electric windows and mirrors, climate control and navigation – this needs to be included but it must remain below €20,000, else the project would fail.
This is realistic. I have spoken to OEMs and producers about costs and structures and it’s not something that can’t be met.
What other Yugo models are in the pipeline?
We have designed six months in total including Siaj. We are currently working with high pressure on a two-door Yugo Roadster, which will be presented in a 1:5 scale model in Germany in September.
And in October, we will be in New York presenting a Yugo SUV.
A five-door hatchback, convertible four-seat model [a nod back to the soft-top original], and high-roof minivan for commercial use [similar to a VW Caddy] are under development.
