The Zastava Yugo, widely regarded as the worst car in history, is making an unexpected comeback. Once infamous for its poor build quality, unreliable performance, and outdated design, the Yugo is now being revived with a modern twist.

The Rise and Fall of the Zastava Yugo
Introduced to the UK market in 1981, the Yugo 45 was a rebodied Fiat 127, designed by ItalDesign. It featured a simple boxy shape and borrowed Fiat’s engine lineup, offering petrol options ranging from 903cc to 1,301cc. Despite its affordability—costing as little as £2,795—the Yugo quickly gained a reputation for being flimsy and unreliable, according to This Is Money.
At its peak, Zastava sold around 3,000 units per year in the UK, but by 2018, only 19 remained on the road. Today, that number has dwindled to just seven. The car’s notoriety even inspired a book titled The Yugo: The Rise and Fall of the Worst Car in History.
The Yugo’s Return
Despite its troubled past, the Yugo name is set to make a dramatic return. A Serbian university professor has spearheaded a project to bring the car back to the market in 2027, says This Is Money. The revival was unveiled at the Car Design Event 2025 in Munich, showcasing a 1:5-scale vision of the new Yugo.
The modern iteration aims to retain the Yugo’s affordability while addressing its historical flaws. While details remain scarce, the project suggests a focus on improved engineering and reliability, potentially making the Yugo a viable budget-friendly option once again.

Lessons From The Past
The original Yugo’s failure stemmed from several key issues:
- Poor Build Quality – The car was infamous for its flimsy construction, leading to frequent breakdowns.
- Unreliable Performance – Owners reported engine failures, electrical issues, and difficulty starting in cold weather according to The Daily Mail.
- Outdated Design – Even at launch, the Yugo felt outdated compared to competitors like the Austin Metro and Ford Fiesta.
Despite these flaws, the Yugo’s affordability made it appealing to budget-conscious buyers. However, its reputation ultimately led to its downfall, with imports ceasing in 1991 due to the Yugoslav Wars, according tooo This Is Money.
Can The New Yugo Succeed?
The automotive industry has changed significantly since the Yugo’s original run. With rising car prices and economic uncertainty, a low-cost vehicle could attract buyers looking for an affordable alternative, says The Daily Mail.
However, the new Yugo must overcome its predecessor’s reputation. To succeed, it will need:
Competitive Pricing – Maintaining affordability while offering better quality will be key.
Reliable Engineering – Addressing past mechanical failures is crucial.
Modern Safety Features – The original Yugo lacked essential safety measures, which must be improved.
Considerations
The return of the worst car in history is both surprising and intriguing. While the original Yugo was plagued by reliability issues, its revival presents an opportunity to redefine its legacy. If the new model can balance affordability with improved engineering, it may find a niche in today’s market.
Whether the Yugo’s comeback will be a success or another misstep remains to be seen. But one thing is certain—this infamous car is once again making headlines.
If you’re curious about some of the worst car recalls of all time too, while you’re here, why not check out our article?