Debuting on October 2nd, 1980, the Yugo would become one of the world's most famous budget cars
By 1980, the Zastava Group counts 48,164 employees; 120 suppliers, and an annual production capacity of 200,000 cars. 150,000 people across Yugoslavia are directly connected to Zastava, while the jobs of 500,000 depend on the company. More than 2.3 million cars have been built.
Zastava's 240,000m
2 sales and service network, already the widest and most organized in Yugoslavia, goes from strength to strength in this decade. In 1980, Zastava counts more than 120 dealers and about 200 authorized service outlets across the country. The average Zastava driver is no further than 50 kilometers from the nearest dealership, matching the standards of the best Western European manufacturers.
At official dealerships, 14,000 specialists annually welcome 20 million servicing visits. More than 1,000 complete Zastava service training each year, a process which sees mechanics and specialists return regularly for retraining in the latest automotive and servicing technology.
On October 2
nd, 1980, the car that the world will soon know as, simply,
Yugo, debuts.
Small in its dimensions (just 3,496 millimeters/ 139 inches long; 54.1 inches tall and 1,542 millimeters/ 60.7 inches wide, with a 2,158-millimeter/ 84.6-inch wheelbase), but large on interior space, it is promptly named Yugoslavia's
Car of the Year, 1981. Demand is strong from the start. More than three-quarters of a million will be built.
The Yugo is initially launched with a 903cc SOHC four-cylinder, producing 45 horsepower at a heady 6,100 revolutions per minute, as the Zastava 45 (later,
Yugo 45 and
Yugo Junior). 
Demand for the Yugo was strong from the start
Zastava produces 180,529 cars in 1981. 211,372 will leave the line in 1982, as employment climbs to 50,000.
In 1984, as Zastava sponsors the 16
th Winter Olympics in Sarajevo, its newest car receives a new heart: the 128/ 101 line's free-revving 55 hp (40.5 kW), 77.5 Nm, 1,116cc SOHC 1.1-liter engine, with bore and stroke of 80 mm x 55.5 mm. Electronic contactless ignition ensures easier starts in low temperatures, and reduces fuel consumption while improving emissions performance.
Both 903cc and 1,116cc engines - under the hoods of the Yugo 45 and
55, respectively - feature aluminum heads; 9.2:1 compression, and double-barrel carburetors.
Both are mated to a 4-speed manual gearbox, driving a 3.76:1 final ratio. First stands at 3.58:1; 2nd, 2.23:1; 3rd, 1.45:1; 4th, 1.04:1, and Reverse, at 3.71:1.
Zastava sponsored the 1984 Winter Olympics in Sarajevo
True to their Italian roots, the motors beg for high revolutions, and move the ~1,800lb car rather better than expected, while using 5.86 and 5.9 liters of gasoline (respectively) per 100 kilometers, at 90 km/h.
Both Yugos feature front-wheel-drive and 4-wheel-independent suspension, by now a Zastava hallmark, with MacPherson struts; coil springs, and stabilizer up front, and struts with (unusually) transverse leaf springs in the rear. Rack-and-pinion steering takes about 3.4 turns, lock-to-lock; a touch slower than expected, but maneuverability is nonetheless impressive, partly thanks to a rear track which, at 51.7 inches wide, is 0.2-inches wider than car's front track. The Yugo can turn around in a radius of 9.5 meters.
The Yugo 55's power-assisted front disc brakes measure nine inches; rear drums, seven.
Small on the outside, big on the inside, said Zastava. So it was
45
L and 55
L models bring softer front and rear spring and damping rates to the Yugo, and a wider rear track for a more comfortable, more stable ride, while several areas of plastic across the dashboard and door panels are replaced with cloth. The improvements are part of Zastava's preparation for entry to the world's largest car market.
In 1984, automobile entrepreneur Malcolm Bricklin, the man who in the previous decade launched Subaru in America, has begun testing the U.S. market for Zastava vehicles, now branded as
Yugo, in Verplanck, New York.
Back in Kragujevac, Zastava has by the mid-80s made a series of changes to the Zastava 45/ Yugo's original design, fitting a larger alternator, and extending the fuel-tank filler neck while changing the position of the battery, to boost safety in side impacts. A new ignition distributor with vacuum advance and a modified carburetor contribute to further improvements in fuel economy and emissions. Rust prevention is done by cataphoresis painting, a process which immerses the body into a bath of water-thinned paint, the better to completely cover its surface.
Yugo of America: 145,511 sold...
(more) 
The Yugo packed a surprising array of standard equipment for its $3,990 price
The first batch of U.S-bound Yugos catches a train from Kragujevac in the Summer of 1985. The Yugo is to be the shortest and least expensive car sold in America.
Bolstering the Yugo's impressive technical specifications, unheard of in this price class, is standard equipment which includes fabric upholstery. Full carpeting. Reclining front seats with adjustable headrests. Folding rear seat. Rear window wiper/ washer. Opening rear-quarter windows. Rear-window electric defroster. Low-fuel warning light. Cigarette lighter. Locking gas cap. A full-size spare tire.
There are few options: air conditioning; stereos; floor mats; wheel covers, and roof racks.
In total, three engines will be available in the United States:
- Between 1985 and 1988, a 52 brake horsepower, 52 lb-ft, 1,116cc unit
(GV, GVL, GVS)
- Between 1987 and 1988, a 64 brake horsepower, 74 lb-ft, 1,324cc unit
(GVX)
- Between 1990 and 1992, a 67 brake horsepower, 74 lb-ft, 1,295cc unit (GV Plus, Cabrio), with multiport EFI Bosch Motronic fuel injection
Introducing the same old idea: Yugo, $3,990, muses advertising which parked a Yugo astride its spiritual forefathers: the Volkswagen Beetle and Ford Model T.
Advertising parked a Yugo astride its spiritual forefathers: the Volkswagen Beetle and Ford Model T
Every generation or so, some smart people figure out how to make basic transportation at an affordable price. The old "car in every garage" idea.
First came the Model T, a basic affordable idea that put millions behind the wheel; millions who had seen only the rear end of a horse before.
But then, over the years, bigger and more expensive became the way to go.
Until the economical Beetle brought things back to reality again.
But then the Beetle went away, and there was nothing to take its place.
Until the Yugo.
The Yugo gives you dependable, front-wheel-drive transportation, imported from Europe for only $3,990. No, it's not a typographical error.
On the one hand, the Yugo is very basic. But on the other, it's not so basic. It's actually better-equipped than many of those "sticker shockers" you've seen.
For instance, there's an overhead-cam engine (yes, Virginia, the engine is included); 4-wheel-independent suspension, and rack-and-pinion steering, to name just a few goodies.
Every generation, some smart people figure out how to make basic transportation at an affordable price.
For all the other smart people who want to buy it.
Thus it was that Yugo of America of Upper Saddle River, New Jersey, proposed a new vehicle at a rock-bottom, $3,995 price (three times less than a base Ford Taurus).
With 55 horsepower @ 6,000 rpm and 52 lb-ft (77.5 Nm) of torque @ 4,600rpm, the Yugo could run from 0 to 100 km/h in about 13.7 seconds, and on to a top speed of 145 km/h (96 mph). Economy varies betwen 31 and 55 mpg.
As soon as the Yugo's impending arrival was confirmed, people stormed the dealerships, putting down deposits without even having seen the cars. By the time 1,500 Yugos had arrived, dealers had orders for five times that amount. Largely due to poor supply prediction, first-year sales of the Yugo fell well below what was predicted. First-year revenues for Yugo America amounted to $123 million; spending on media advertising averaged $500 per car.
Yugo America Inc. President William Prior later refers to the period as
"Yugomania," interviewed for a
Ward's Auto World article which acknowledges that Zastava "has done a beautiful job of putting the Yugoslavian auto industry on the map.
"That's good news for the 53,000 employees of Zavodi Crvena Zastava, including 37,000 who produce some 200,000 vehicles per yer in Kragujevac at vertically integrated factories spanning 52 acres (21 hectares) of central Yugoslavian hill country." (Ward's Auto World, David C. Smith, November 1986).
After a hectic first year of filling orders, sales rose for 1987, peaking at 48,000 units, 22.5% of Zastava's total production that year.
For 1988 came line extensions in the form of a
GVL (better seats) and
GVS (velour upholstery, and standard radio & tape deck). Yet the major news was the GVX, with a larger SOHC 1.3-liter engine and five-speed manual gearbox. With bore and stroke of 3.40 x 2.18 inches (86 x 55 mm), and a compression ratio of 9.1:1, the GVX boasted 64 bhp @ 5,000 rpm, and 74 lb-ft @ 4,000 rpm. Riding on 155/70SR13 tires, versus the standard car's 145/70s, GVX added a front air dam;
aero trim, and fog lamps.
The Yugo was in several ways superior to more expensive, Asian-built vehicles fielded by GM and Ford in the American-market budget class that Yugo had created. Americans will recall the Suzuki-built, three-cylinder Chevrolet Sprint (and subsequent Geo and Chevy Metros), and Korean Ford Festiva of the mid- to late-80s.
In particular, the $4,435 Yugo
GV Plus of 1990 would offer fuel injection even as many in a segment above it were still contemplating whether this, more reliable; more economical, and yet more powerful configuration might be a good idea. The Hyundai Excel; Mitsubishi Precis; Subaru Justy; Toyota Corolla, and Toyota Tercel all remained carbureted - and higher-priced - competitors.
Yet, in retrospect, the Yugo experienced the same problems that had surfaced years before in the cases of other inexpensive cars such as the Chevrolet Chevette; AMC Rambler, and Crosley: American dealers found, to their dismay, that many an owner considered these cars disposable, and failed to perform even basic maintenance. One Milwaukee, Wisconsin Yugo dealer told of an angry woman whose engine had finally stalled after nearly 40,000 miles without an oil change. She retorted that she "had not bought this car to spend all that money on oil and such." Similar stories were common.
In 1988, Zastava took over American distribution of its cars. Improvements continued and, indeed, the best was yet to come.
The quickest Yugo to be sold, the GV Plus, produced 67 brake horsepower @ 5,500 rpm and 74 lb-ft of torque @ 3,750 rpm. Porsche Engineering had fiddled with its engine, which featured multi-port fuel injection.
Yugos can still be seen running around in the 'States, and a cursory Internet search will reveal several message boards dedicated to keeping U.S. Yugos alive.
Comments on the Yugo, from American owners ...
(more) The Yugo also proves popular in the United Kingdom, where Zastava vehicles are imported by Zastava (GB) Ltd.
Yugo UK/ Zastava GB Ltd
In 1981, the Zastava 101 arrives in the United Kingdom as the Yugo 311 (1.1-liter 3-door); 313 (1.1-liter 5-door); 511 (1.3-liter 3-door), and 513 (1.3-liter 5-door).
The Zastava 128 is imported as the 3-door Yugo 411 and 4-door 413 in 1984.
In 1983, the Yugo 45 is introduced to Britain. The 55 model folllows, and in 1986 these models are redesignated the 45A and 55A. The 65A
GLX completes the range.
Yugo Florida/ Sana: A larger, five-door sister
The Yugo Florida was Zastava's best car to date, and its most independent effort
Zastava in 1986 produces 175,462 cars; in 1987, 213,286.
Yugo America Inc. president William Prior predicts a U.S. market for between 1.1 and 1.5 million entry-level cars by 1991. Plans are made for the Yugo to be joined in the 'States by a larger, five-door sister: the $7,500-$8k
Yugo Florida.
In the mid-80s, a group of Zastava engineers set about creating the company's best car to date. Using Fiat facilities and working from a Fiat Tipo proposal by Giorgetto Giugiaro, they come up with a roomy, clean design with a 0.32 coefficient of drag.
The first production Floridas leave Kragujevac lines on October 2
nd, 1988. The name is a reference to the company's success in the U.S., although the car wears the
Sana moniker in some European markets. The future looks bright for Zastava and its suppliers, such as Teleoptik, which have invested so much in the new car's development. Rumor has it that a sedan version is in the works.
The Yugo Florida/ Sana: Giugiaro lines...
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The Florida launched to much fanfare and heady expectations on February 19th, 1987
Hotal šumarice, Kragujevac. Feburary 19th, 1987. The scene is set for the launch of Zastava's newest car. With Zastava president Dr. Radoljub Mičić on hand, the company proudly marked the transition from project "Zastava 103" to production "Yugo Florida."
Several names had been considered; 800, in fact, including Avala. Sonata. Kraguj. Morava. Tara. Sana. In celebration of the Yugo's success in the United States (more than 50,000 had been sold by this point), the car would be known as "Florida," although the "Sana" moniker would be applied in some export markets.
As the press arrived that morning, Zastava's most independent project to date was still shrouded in secrecy. At 11am, the covers were finally pulled off the pearl white exhibit. The response from the 150 journalists who had gathered for the occasion was positively ecstatic.
Kragujevac's latest was proclaimed attractive and spacious: a true family car for the '90s.
"The Yugo Florida has been inspired by one of the most modern cars in the industry (Fiat's Tipo, Europe's 'Car of the Year, 1989')... it deserves every success," wrote
Auto Moto Revije. MacPherson front suspension and a semi-independent rear marked Zastava’s move to all-around coil springs while, inside, things were quite plush for this class: the Florida indicated to its driver when its windshield-washer fluid was low; when its doors were open, and when its bulbs had burned out.
The project had cost $150 million, of which about a third had gone toward development, with the remaining chunk spent on enabling fully domestic production.
A 71-horsepower 1.4-liter (1,372cc) engine was available at launch, although plans included 1.1-liter and 1.6-liter options, and even a diesel version, using Fiat's 1.7-liter motor. A fuel-injected 1.3-liter Florida, sharing the Yugo GVX's engine, debuted for 1989.
Zastava planned to produce between 60,000 and 100,000 Floridas per year, with 70% of production to be exported.
2,620 Yugo Unos were made under Fiat license
Zastava begins producing the Fiat Uno under license in 1988. 2,620 are made through 1994.
1989 is Zastava's record year, as Kragujevac turns out 180,950 vehicles.
To this, add additional, off-site production of 42,614 cars and 4,827 trucks.
118,237 Yugos are produced that year, a record in itself. 26,777 vehicles are exported.
The Kragujevac factory boasts an annual capacity of 220,000 vehicles.
53,357 people are employed at Zastava, while production incorporates 280 facilities across 130 towns in Yugoslavia.
Zastava's 3.5 millionth vehicle is produced on September 20
th, 1989.
By 1990, the automotive market in the former Yugoslavia accounts for 160,000 units per year.
This; Zastava's export business; the new Florida, and the technology transfer from Zastava's Fiat Uno license should have ensured success.
1991, however, would bring new challenges.