Volkswagen may bid on Yugo, um, we mean Zastava

Click above for more pics of the Zastava Skala 55

It was just the other day that we looked back at the automotive punchline that was the Yugo in America. In all actuality, though, the Serbian automaker Zastava that's currently for sale, has plenty to offer prospective buyers. This fact is evidenced by reports that Volkswagen is considering bidding on the ex-Yugoslavian company. Zastava is the only automaker based in Serbia, and has a number of factories and excess production capacity which could prove rather useful to companies such as Volkswagen, which is looking to expand their production capabilities in Europe.

Zastava currently produces a line of vehicles based on licensed Fiat architecture. The plant is currently producing about 15,000 units per year, but is capable of building as many as 60,000. At this time, we're not aware of any official offers being made, but we're sure that if Volkswagen is looking, others likely are as well.

[Source: B92, Carscoop]

Share This Photo X