If you're unfamiliar with the name "Yugo," crack open any automotive history book and the brand likely has an entire chapter dedicated to its demise. The tiny Yugoslavian automaker grew in popularity throughout the 1980s and 1990s, arriving in the US in 1985 courtesy of one Malcom Bricklin, the same man who would go on to make Subaru a household name.
Unfortunately for Yugo, American buyers weren't as fond of Eastern European hatchbacks as they were of Japanese sedans. Shoddy build quality, unreliability, and terrible safety measures left many consumers writing off the brand for good. In 1992, Yugo would disappear from the US entirely and go down in history as one of the worst car brands of all time. There’s even an iconic Simpsons episode partly inspired by Yugo's failures.
Despite those faults, though, Yugo somehow survived in Europe for nearly 30 years before ultimately closing up shop in 2008. Even up into the late 2000s, the company was still trotting out the same no-nonsense, cheap hatchback that had been on the market for two decades prior—albeit with minor updates to keep things fresh.
Now, more than 17 years later, the Yugo brand is back—and its new owners have big plans for the small hatchback. Here's what we know so far.
So, Yugo Is Back?
That’s right, the auto brand that was the butt of so many jokes is back from the dead. In 2025, university professor Dr. Aleksandar Bjelić purchased the rights to Yugo with plans to bring a new hatchback to market. Bjelić is an engineer and economist who claims to have decades of experience in the auto industry.
Bjelić filed trademarks to use the Yugo name worldwide, and hired a Serbian designer to come up with the new vehicle’s look, which the company showed in sketches earlier this year before releasing a scale model.
What Will It Look Like?
The new Yugo will retain some retro charm, but the design will mostly fall in line with the many other three- and five-door hatchbacks on the market today (specifically in Europe). The design was penned by Darko Marčeta and unveiled as a scale model at this year's Car Design Event in Munich.
The first concept (used as the basis of our rendering, pictured here) has a three-door layout with a sleek roofline and a tapered profile. It almost resembles the Hyundai Ioniq 5 or upcoming Rivian R3. The new concept does have some shades of the original Yugo, particularly its boxy proportions, but the design is otherwise clean and straightforward.
LED headlights with a lightbar adorn the front end, uniquely styled LED taillights with an illuminated "YUGO" logo litter the tailgate, and the five-spoke wheels make it all look a bit sportier. There's even a unique brake light detail above the rear glass in the shape of a "Y."
We don't know what the interior will look like, and we probably won't know until the first fully functional prototype debuts.
What’s Under The Hood?
Yugo promises to offer a wide variety of powertrains, ranging from pure gas to hybrid and electric. The entry-level Yugo trims will likely get turbocharged gas engines, with options for hybrid and plug-in hybrids, and potentially an EV down the line. The company says it even wants a performance variant, as well as automatic and manual transmission options.
CEO Dr. Aleksandar Bjelić reportedly hinted at the company using an already established platform—in theory, something like Volkswagen’s versatile MQB architecture. But, Yugo has yet to disclose which companies they are currently in talks with, if any. Due to Europe’s stringent emissions regulations, Yugo would have to partner with an established automaker for a current platform or develop an entirely new one from scratch.
How Much Will The New Yugo Cost?
The original Yugos were known for their affordability. At one point, Yugo had the cheapest new car in the US, with an asking price of $3,990. Don’t expect this new one to be that cheap, though.
Yugo’s new hatchback will compete with other subcompacts throughout Europe like the Citroen C3, Dacia Sandero, Renault Clio, and Volkswagen Polo. That should give it a starting price of anywhere from £20,000 to £25,000.
Will The New Yugo Come To The US?
Our best guess? Probably not. Even though Yugo’s new CEO has trademarked the name worldwide, we don’t expect to see the small hatchback in the US. Given its size and market positioning, Yugo is primed to compete specifically throughout the European Union.
When Will We See It?
It’s hard to imagine that the new Yugo will be on the market anytime soon. Beyond sketches and a scale model, the brand currently has no dedicated facilities for designing or manufacturing its hatchback. The company did say that a fully functional prototype would debut at the Belgrade Expo in 2027, with production slated to kick off that same year. But, we’re highly skeptical.
