The name "Yugo" is more likely to elicit giggles than investment capital in the U.S. But the ongoing privatization of Serbian automaker Zastava, the current incarnation of the one-time Yugoslavian state automaker, shows that there is some value in a brand oft-scorned in the U.S. -- Time magazine once declared the Yugo one of the worst cars of all time.
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According to reports, Volkswagen AG is considering a bid for Zastava, which is currently 99.9% owned by the Serbian government. The automaker has also fielded indications of interest from General Motors Corp., Fiat SpA, Ford Motor Co., China's FAW Group Corp. and Tata Motors Ltd. of India, according to local reports, though GM has said it has no intention to submit a bid by the April 15 deadline.
But whatever the outcome of the auction, don't expect to see a new generation of Yugos in U.S. showrooms any time soon. Interested bidders appear more attracted to Zastava's excess capacity than its product line. The automaker's plant is currently producing 15,000 vehicles annually on a platform capable of building as many as 60,000 units. - Lou Whiteman
See CNN Money story on VW's interest
See Yugo profile from Time's list of the 50 Worst Cars Ever
