Corporate Obituaries: Yugo

Mike Schuster  Jan 22, 2009 1:05 pm

Corporate Obituaries: Yugo
 
You didn't. It went.
 

 
Headline
  Ob1
YUGO
Subcompact Vehicle

The flagship of Serbo-Croatian technology met a fateful end as the final Yugo rolled off the assembly line on November 11, 2008. The much-maligned car was 30 years old.

Yugo's death came as something of a surprise: Many familiar with the subcompact had no idea it was still being manufactured and couldn’t for the life of them figure out why.

But in spite of the confusion, most agreed the Yugo’s passing signaled the end of an era - of lemon jokes, at the very least. More than a few tears were shed by factory workers.

The Yugo began its life as a product of former Serbian weapons manufacturer Zastava. After building automobiles for the Yugoslav Army, the company began engineering passenger vehicles based on designs by Fiat of Italy.

By using the Fiat 128 -- the most popular model -- as a prototype, then modifying the body, Zastava’s Koral -- otherwise known as the Yugo 45 -- was born on October 2, 1978.

The car was heralded as a great achievement for the communist state. It was affordable, and for a brief time enjoyed a tender and loving infancy in its native land. It wasn’t until it was exported to the United States in the mid-1980s that it was deemed a freakish sideshow catastrophe.

Entrepreneurs Miro Kefurt and Malcom Bricklin struck a deal for the stateside production of the Yugo. At an introductory rate of just $3990, it was the most inexpensive model on the market by far.

But the initial excitement was soon dampened by poor user experience and the harsh assessment of critics.

The Yugo was cruelly mocked for its off-putting appearance and defective parts. Consumer Reports viciously accused it of "barely being a car," while others regarded the vehicle as "disposable.”

The hatchback was left sputtering in the face of mocking giggles and derogatory barroom jokes - often by the side of the road while its owner looked for a nearby mechanic.

In 1992, Yugo’s American operation was forced to close its doors due to Yugoslavian unrest and a failure to meet exhaust emissions standards. The car spent its remaining years in war-torn Serbia.

The Yugo declined any bailout and died peacefully in Kragujevac. The cause of death was reportedly an acquisition by Fiat, but some claim it was actually sadness.

In lieu of donations, Zastava asks that jokes involving the Yugo are now made at the expense of its former competitors General Motors (GM) and Ford (F).

Scroll over tombstones to read other obituaries   











Rate this article:  (0 Votes)
Comment (1) See All Comments »
01-22-2009, 2:08 pm
This is your idea of helpful investment news?? Get a life and tell us something meaningful, your attempt at humor doesn't resonate with me.
Read More
discuss this article and more on the mv exchange
No positions in stocks mentioned.

Get real-time options trading ideas from Steve Smith, veteran options trader and newsletter author, plus let him show you the way to cut risk and boost your returns through the strategic use of options.  Click here for a free 14 day trial to OptionSmith by Steve Smith.



The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Ticker Talk
Popular Tickers:
SPX »AMZN »F »
Select
  •  
Talk Now
Share this Talk on your site:
Send us your feedback

Our Professors

rss article alert