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The Yugo (pronounced [ˈjûɡo]), also marketed as the Zastava Koral (pronounced [ˈzâːstaʋa ˈkǒraːl], Serbian Cyrillic: Застава Корал) and Yugo Koral, is a supermini hatchback formerly manufactured by Zastava Automobiles, at the time a Yugoslav corporation.

Originally designed in Italy, as a variant of the Fiat 127, the first Yugo prototype was manufactured on 2 July 1977. Series production started on 28 November 1980. The Zastava Koral, a facelifted model, was marketed until 11 November 2008, after production of 794,428 cars.

The Yugo was marketed in the United States from 1985 to 1992 by Malcolm Bricklin, with a total of 141,651 sold – peaking at 48,812 in 1987 and falling to 1,412 in 1992.

Over the course of its production, the model range was marketed under various nameplates:

Yugo 45 derivative models have included the Yugo 55, 60, 65, Koral, Ciao, Tempo, Cabrio, GV, GV Plus, GVX, and GVL. Yugo engines were fitted with a carburetor until well into the 1980s before fuel-injected models (starting with the Koral 65) were introduced, beginning with the GVX-EFI (an electronic fuel injection system), which featured a 1300-cc engine.

The fuel-injection system was a Motronic MP3.1, which was later developed with Bosch to Motronic M4.6 MPI on 1.1- and 1.3-L engines and had multiport fuel injection with a three-way catalytic converter and "Lambda" sensor.

Near the end of its production run, Zastava sold an updated version of the Yugo Koral model, known as the Zastava Koral IN, which hadcentral locking, a three-step rotary switch on the dash marked "0", "1", "2", and "3" for a headlamps leveling control in four height positions, a four-speaker audio system, electric windows, folding electro-adjustable side-view mirrors, alloy wheels, an optional air conditioner, and an optional Renault-designed three-speed automatic transmission.Zastava sold these in Serbia, Montenegro, Croatia, the Republic of Macedonia, Greece, Lebanon, Libya, Syria, Tunisia, andEgypt.

Besides all the Koral versions available, other models included the Florida and Skala. In October 2003, an agreement with Fiat was reached for production of the Fiat Punto by Zastava for Eastern European markets, which was known as the Zastava 10.

The Koral IN L, with a Peugeot fuel-injected 1.1 L-60 PS (44 kW) engine, met the European Union safety standards in a test supervised by the German Technischer Überwachungsverein (Technical Monitoring Association), a necessary step for importation to E.U. countries.

Zastava was founded as an arms manufacturer in 1853. By the late 1930s, the company had expanded into automobile production supplying Ford-designed trucks to the Royal Yugoslav Army. Vehicle production continued until 1941, when World War II reached Yugoslavia. Following the war, Zastava was permitted to produce Jeeps under license from Willys-Overland until production was halted in the early 1950s.

The first passenger models were produced on 26 August 1953 using designs licensed by Fiat of Turin. The first model designed by Zastava was a sedan called the Milletrecento ("one thousand three hundred") powered by a 1,300 cc engine. Some of the most successful models were those based on the Fiat 128 model, marketed under different names: Zastava 101, Zastava 128, Zastava 311, Zastava Skala, etc.

Zastava continued to produce vehicles for the Yugoslav and European markets until exports were limited by sanctions imposed by the United Nations in the 1990s. In 1984, automobile entrepreneur Malcolm Bricklin tested the United States market for Zastava vehicles, now branded as Yugo. As a result, in mid-1986, Yugo America began selling cars at a starting price of $3,990 for the entry-level GV ("Good Value") hatchback equipped with the 1,100 cc overhead-cam five-main-bearing engine and four-speed manual transmission. The similar GVL offered a plusher interior, but the sporty top-line GVX was powered by the 1300 cc engine mated to a five-speed manual transmission, and included as standard equipment a number of deluxe features such as a ground-effects package, alloy wheels, and rally lights. However, though the GVX was billed as an upscale, sporty version of the base GV, it went from 0-60 mph in 13.56 seconds, just a half a second faster than the GV. When the political instability in Yugoslavia intensified in early 1992, Zastava was forced to stop exports.

Today, various models are available in the former Yugoslavia, including an agreement signed with Fiat for the production of the 2003 Fiat Punto model.

Many mechanics and even Zastava factory workers agree that the "best" Yugos ever were built between 1988 and early 1991. Quality control was good; high standards were set in terms of plastic quality, seat cloth, and "a well screwed together" interior. Paint and antirust coatings were also well done during that period, evidenced by many cars still showing no signs of rust, tears in the seats, or major engine issues after more than 20 years.

1989 was considered a "golden year" for Yugos because almost 200,000 were built that year, and many can still be seen on the road today. Also, cars were usually branded Yugo instead of Zastava during that period, because the company was taking pride in the (at the time) good sales and reputation established in the export markets, especially in the United States.

In 1990, a batch of 450 cars with automatic transmissions and air conditioning was shipped to the United States. With political problems starting in 1991, quality dropped significantly, coming to such low standards such as plastic parts of the dashboard not fitting correctly.

Because the Yugo was built as a "Yugoslav" car with political problems and civil war breaking out in 1990–91, production slowed down and the supply of parts was interrupted. Most of the plastic came from Croatia, while the alternators and electrical equipment came from Slovenia. With the start of civil war, economic and transportation ties were broken, resulting in shortage of most parts coming from the two seceded republics. Though the sanctions were not in place until May 1992, Yugos built between June 1991 and early 1996 were built with a variety of "leftover" parts: as an example, getting a car with a blue dashboard and a brown steering wheel, seats that were mismatched in color, and most likely an "American" instrument cluster with speeds printed in MPH rather than km/h, and with written labels like water and oil instead of small drawings, and a seatbelt safety warning light were possible. In some extreme cases, the car would come with different interior panels and a steering wheel from other Zastava products such as the Zastava 750. When exports to United States (and the rest of the world) stopped, a number of federalized Yugos were still left in the factory's parking lots, and many people got these "American" Yugos instead of the European ones. When Yugoslavia broke apart in the early 1990s, production rates steeply declined to 14,000 in 1992, 7,000 in 1993 and 1994, and 9,000 in 1995. In 1996, when sanctions were lifted, production rates slowly increased as living standards in the former Yugoslavia started to improve. Even so, problems for the factory started once again when it was put out of production in mid-1999 as a result of war with NATO.

International Automobile Importers (IAI) was a company founded by Malcolm Bricklin to import the X1/9 and 2000 Spider after Fiat halted their manufacture. Bertone and Pininfarina carried on production under their own names and Bricklin's IAI took over their U.S. importation. Bricklin wanted to import additional brands, and international dealmaker Armand Hammer had been asked by the Yugoslavs to identify business areas in which they could generate exports to bolster their economy. Hammer thought the idea of exporting the small cars made in Kragujevac, Serbia, by Zavodi Crvena Zastava, would be viable. Zastava had, since the mid-19th century, been a quality armaments producer and sponsored its own museum.

As Zastava celebrated its 100th anniversary, it started producing vehicles made under license from the Italian company Fiat, located just across the Adriatic Sea. For three decades, Zastava produced the rear-engined 600 and the 101, a bustle-backed version of Fiat's 128. On its own initiative in 1980, Zastava introduced its Jugo or Yugo model which, though still using Fiat 128-type power train and underpinnings, was an update of the Fiat 127. Styled in Turin, the two-door hatchback's lines were reminiscent of the original VW Golf or VW Rabbit. Zastava was already exporting its new offering to other Eastern European markets, installing the bigger 128 overhead-cam engine for a top speed of 90 mph (145 km/h).

In 1982, U.S. entrepreneur Miro Kefurt (also responsible for the Oka NEV ZEV) contacted Zastava in Kragujevac (ZCZ-Zavodi Crvena Zastava) with an idea to export the Yugo 45 to the United States. The vehicles were to be renamed Yugo GV for the United States market and YugoCars, Inc. was formed in Sun Valley, California, by Kefurt and Ray Burns. The proposal required approval by Fiat in Italy due to existing contractual restrictions in effect for Fiat—Zastava collaborations.

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