Yugo Returns: New Model to Get Manual Transmission

Official: Yugo is preparing its comeback. Yes, that very car, which often became the subject of jokes due to its failure, is trying to create a new history. Today we got the first details and a chance to glimpse its design. And to be honest, the new Yugo looks like a worthy successor to its infamous predecessor. The main question is whether it will make it to the next stage: creating a working prototype, which is due to be shown in two years.

The Yugo Legacy

The original model left its mark on automotive history. It did not claim to be the fastest, the most beautiful, or the most technological, but it didn’t need to. It was functional, practical, and, most importantly, affordable. Although the exact prices for the new version are not yet known, the available details sound quite promising.

Designed by Darko Marčeta under the guidance of Professor Aleksandar Belić from Germany, the new Yugo has a distinctly cubic, classic look. The company presented the first large-scale prototype today at the Car Design Event (CDE) in Munich.

Targeting the European B-segment (equivalent to subcompacts in North America), the car has a two-door layout, a wide flat profile, and rear doors with a slight slope. The design combines retro charm with modern elements.

However, the most interesting part is probably hidden under the hood. After all, a good appearance requires appropriate technical content. Yugo states that the model will be available with an internal combustion engine, with both manual and automatic transmissions. The possibility of releasing electric modifications and different body styles is also being considered. So, we are looking at a compact, practical car that can offer a manual transmission.

There is no official information on sales markets yet, but the European direction seems the most likely.

Future Plans

The company has set key dates for further announcements. On September 15 of this year, a “sports version” and additional technical details will be presented at CDE Classic in Dietzhölztal. That’s when, we hope, we will learn about the platform and powertrain of the new product.

However, the full presentation will only take place in 2027. Yugo emphasized that a full-scale working prototype will appear no earlier than May 15 of that year during the Belgrade Expo. It has been almost a decade since Yugo production ceased in 2008, so a short wait is unlikely to be a serious obstacle. But the idea of an affordable, positive car appearing as soon as possible is appealing. We hope the wait will be worth it.

Yugo Photos

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