Prof. Dr. Bjelić, who teaches economics at the University of Belgrade and has held top marketing roles in the auto industry, has acquired the global rights to the Yugo trademark. Teaming up with Serbian designer Darko Marčeta, they’ve revealed preliminary designs for a new three-door hatchback that retains the boxy silhouette of the original Yugo while integrating modern touches like LED lights, alloy wheels, and updated aerodynamics.
The reborn Yugo will focus on being a simple, affordable vehicle, staying true to its roots. It will be built on a proven platform sourced from a yet-to-be-named partner, ensuring compliance with modern safety and efficiency standards while keeping costs down. The powertrain lineup will initially include internal combustion engines, with the potential for electric versions in the future.
A scale model of the redesigned Yugo was recently displayed at an international automotive design event, attracting attention for its blend of nostalgia and innovation. The first full prototype is expected to debut at the Belgrade Expo in 2027.
Originally manufactured by Zastava Automobiles in the former Yugoslavia, the Yugo rose to fame in the 1980s as one of the most affordable cars in the U.S. and European markets. However, its reputation suffered due to quality issues and poor performance. Despite its troubled history, the Yugo has since developed a cult following, especially among enthusiasts who appreciate its simplicity and underdog story.
This new effort aims to reframe the Yugo as a smart, practical car for a new generation—particularly appealing in today’s market where affordability and efficient urban mobility are becoming more desirable. By combining the charm of the original with contemporary standards, the Yugo could carve out a unique niche in an industry dominated by increasingly complex and expensive vehicles.
Prof. Dr. Bjelić’s vision for the Yugo is ambitious, but it taps into a growing desire for cars that prioritize function, cost-effectiveness, and personality. If successful, the Yugo’s second chapter could transform it from a symbol of outdated design into a model for accessible, forward-thinking transportation.
As the automotive industry continues to evolve, the Yugo’s unexpected comeback serves as a testament to the enduring appeal of simplicity and affordability in vehicle design.