by Grant Cogell

Created on: August 20, 2010

When thinking of automotive 'flops', the first things that come to mind are the Edsel, DeLorean, and of course that American classic fireball, the Pinto. However, when considering a definition for 'flop', most people would agree on a few key points. First, a lot of money would have to be put into the automobile. Second, it would have to be highly hyped. Third, it would have to fail spectacularly. There is one automobile that is, by this definition, the epitome of automotive flops. That vehicle is...the Yugo GV.

The Yugo GV, as it was designated in the United States, was manufactured by Zastava in Kragujevac, Serbia in varying forms from November 28, 1980 to November 11, 2008. It's run in the United States was much shorter. Based on the Fiat 127, a reliable and fun hatchback, the simplistic little 903cc GV sold fairly well shortly following it's arrival in the United States, thanks to entrepreneur Malcolm Bricklin. The story of the Yugo's rise and fall in the States is a very predictable one. A brief look at Malcolm Bricklin's track record reveals his business pattern, and the fate of the Yugo. He was personally responsible for bankrupting at least three previous auto importing businesses, one of which was bought out and later became the main importer of Subarus into the US. He signed and very promptly lost contracts with Subaru and Fiat. These auto manufacturers produced far more reliable vehicles than Zastava, a former arms manufacturer.

Bricklin raised hundreds of thousands of dollars from investors and car dealerships, which he would then spend on office buildings, rare wood desks, fur coats, and whatever he had left over went to importing cars. After the first shipment of cars arrived, he would realize that he had greatly over-promised to his investors. He would promise promotional materials for dealers, exclusive rights to distribution, and shipments of cars for ridiculously low prices. When he realized he didn't have promotional materials or enough cars, he raised money from more investors, promising them things he couldn't deliver. It was a vicious cycle that fulfilled requirement number one for a flop. A lot of money would have to be put into the automobile.

Bricklin wound up overseeing production of the promotional materials for the Yugo. He had hired Bertone and Pininfarina to go to Kragujevac to oversee production of the vehicles and increase quality standards. In spite of the reports they gave him, Bricklin grossly overestimated the specs and

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