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Yugo

Zastava was founded as an arms manufacturer in 1853. Vehicle production continued until 1941 when World War II came to Yugoslavia. Their most famous car is the Yugo which has its main roots with FIAT. Most recently, FIAT have invested over 700 million dollars in return for a 70% stake in the company in Serbia.

The initial models were by rights, mostly that of FIAT’s design and engineering.. The very first model designed by Zastava was a sedan called the Milletrecento which boasted a 1.3 L engine. Some of the most successful models were those based on the Fiat 128 model, marketed under different names.

Zastave stopped production when the UN decided that it was necessary to put heavy sanctions on the company for ethical and working conditions reasons. This hindered the vehicles export to other UN member states and crippled their finances. The company changed its name to Yugo and began to market its vehicles in the US.

By the late 1980s, US distributor Yugo America was in pecuniary trouble yet again, the American branch of distribution was taken over by Zastava itself.

When prosperity ad the 1900s rolled in, Yugo began to offer more luxury and prestigious items in their somewhat ‘dull’ cars. The interior was updates and a 1.3L engine replaced the 1L which had previously supplied their cars with power. They also began to offer an automatic gearbox for their customers.

However, when the political instability in Yugoslavia intensified in early 1992, Zastava was forced to stop exports to the United States.

Today there are various models available in the former Yugoslavia, including an agreement signed with Fiat for the production of the 2003 Fiat Punto model.

They are available in countries around the eastern bloc such as Poland, Greece, Croatia, and other more far away nations including the Lebanon. Also, talks are underway which may see Yugos coming to other EU member states in the near future.