Origins
The roots of Zastava lay in the 1851 founding in Kragujevac of the Vojno-Tehnicki Zavod (Military Technical Institute). The institute developed a cannon foundry division in 1853, becoming a military vocational school in March 1854. During the 1880s, Zastava also began with the production of firearms.[3] At the end of the 19th century the cannon foundry changed its name to the Military Engineering Works. The firm rapidly expanded its production program and the complexity and quality of its products.[4] That original company is now known as Zastava Arms.
In 1904, within the company, a section dedicated to automobiles was inaugurated. Beside repair services, certain car parts were also manufactured. In 1939, it begins assembling Chevrolet military trucks. Production came to a halt in 1941 with the Axis invasion of Yugoslavia and, by then, 400 trucks had come out of the factory which consisted of a working force of 12,000 men.[3]
1950s
After World War II, the plant was renamed Zavodi Crvena Zastava ("Red Flag Factories"). In a referendum held on August 26, 1953, 96% of the employees of then Zavodi Crvena Zastava voiced their desire to produce automobiles. That year, 162 Willys Jeeps would leave the Kragujevac factory.
On 12 August 1954, Zastava signed a cooperation agreement with Fiat.[5] Three months later, Kragujevac began assembling the Fiat 1400, 1100 B and AR-55 Campagnola.
Fiat 1400 was Zastava's first assembled automobile, but Fića Zastava's licence built version of Fiat 600 is its iconic historical brand. 923,487 of Zastava 750 were produced over a span of 30 years,[5] with several different engines and in various equipment levels, from 18 October 1955 to 18 November 1985.
Total vehicle production in 1955 was 1,044, and by 1958 it had risen to 3,596.[5]
1960s
Zastava's annual production climbed to 13,719 units in 1960.[6] The company entered the new decade with a replacement for the 1400: Fiat's 1100, shown in Geneva as the successor to the 1100 B. With the advent of the 1961 Fiat 1300 and 1500 came Zastava's 1300/1500 series, produced as both sedans and wagons. With all-around disc brakes, rear-wheel drive and up to 72 horsepower, the "tristać" was Yugoslavia's favorite upmarket car. Today, many across the former Yugoslavia recall the 1300 as Zastava's best automobile ever: the Jugoslovenski Mercedes as they call it. 201,160 copies of the 1300 and 1500 were produced from 1961 to 20 December 1979.[6]
The Fića had started life as the 22 PS 633 cc Fiat 600, designed by legendary Fiat engineer Dante Giacosa. In 1962, Zastava began production of the Fiat 600D, badged Zastava 750, boasting a 25 PS 767 cc engine capable of propelling the car to 110 km/h.
The floorpan of the 1300/1500 was used as the basis for the Polski Fiat 125p, which was produced by Polish FSO from Zastava CKD kits. The 125p was created by mating the body of the Fiat 125 to the mechanicals (engines, gearbox, transmission and suspension) of the 1300 and 1500. On the Yugoslav market, the 125p was known as the Zastava 125PZ.
1965 marked the official beginning of Zastava exports, with 6,000 cars sent to Poland.
1970s
In 1970, Zastava launched the 750M, fitted with a new 767 cc engine boasting a thermostat-controlled pressurised cooling system.
In the beginning of the 1970s, Zastava arranged with Fiat to produce the Zastava 101 (4 cyl, 1116 cc OHC, 55 hp, front wheel drive), which was based on the Fiat 128. It had restyled rear panel and resembled a hatchback body style. This 3- and 5-door variant of the Fiat 128 was specific to Zastava and was never released elsewhere by Fiat.
It was said that the model 101 should be produced in Yugoslavia for both the Yugoslav and Italian markets and vice versa; in the Italian market, it would have been sold under the marque Innocenti. It was soon nicknamed Stojadin as a pun on sto jedan (101) (Stojadin is a male name, although folk etymology also associates it with sto jada, "a hundred woes", due to the poor performance and assembly). In spite of this negative record, the car was a good seller in the domestic market as there was a virtual monopoly. Yugoslavs used to buy it because of its moderate price, simple mechanics, cheap spare parts and low maintenance cost compared to other cars assembled in Yugoslavia.
In 1979, the Zastava 750S – (Special) was released which offered updated interior controls and switches, a new steering wheel and a sportier 22 kW engine which raised the car's top speed to 120 km/h.
1980s
In 1980, the Zastava 850 was launched, with a 32 PS 848 cc engine propelling it to 125 km/h and a fully synchronized transaxle. Production of the 750 and 850 continued until 1985 in L, LE and SC versions.
In the mid-seventies, Zastava management decided to develop a new model, still based on the same Fiat engine. It was originally to be known as Zastava 102, but the name was dropped in 1981 and the car released as Yugo 45. It was styled by Zastava with some help from Fiat engineers. It was a shortened Fiat 128 and it followed the style of the Fiat 127 and Autobianchi A112 but with a more square appearance. Several variants were made, with 903 cc, 1116 cc, and 1301 cc engines.
In 1981, Zastava entered the British market. 811 cars were registered that year, with sales increasing to 3,101 in 1982, their first full year.[7] In 1983, export sales accounted for over a sixth of Zastava's production.[8] Later in the 1980s, Yugo was exported to USA and at the same time it went through several modifications, most importantly the adoption of a five-speed gearbox. In the same decade, Zastava changed its branding name to Yugo and derivative models were renamed: original Zastava Yugo to Zastava Koral and Zastava 101/128 to Zastava Skala or Yugo Skala. The original numerical classification would remain unchanged for some export markets, as for the United Kingdom.
1990s
In 1988 a new model was released called the Zastava Florida (known as Yugo Sana or Yugo Sana Miami, in some countries). Its exterior was designed by Giorgetto Giugiaro, with a body shape similar to a Fiat Tipo (1988) or Citroën ZX (1991).
In the early 1990s, Zastava was affected greatly by the breakup of Yugoslavia. The factory production became unstable because of a problem with supplies. Exports were impossible during those years, because of trade sanctions imposed on Yugoslavia. As a result, its cars disappeared from most foreign markets after 1992. Production stopped in 1993, even though there was a waiting list for Yugo cars.[9]
Between 1992 and 1995, it was under UN sanctions, and then between 1998 and 2000, it was under EU and US sanctions. As a result, many Zastava subsidiaries abroad were forced to cease trading, such as Zastava (GB) Ltd. in the United Kingdom and Yugo Cars in the United States.
In 1999, during the Kosovo War, NATO bombed the factory in Kragujevac, Serbia because Zastava Arms was a major military supplier to the Serb government. Some of the car manufacturing buildings were damaged and numerous workers were injured.[10]
2000s
After the war, there were trade talks with Hungarian firms to assemble Yugos in Hungary, but no agreement was reached because of the Yugoslavian partner's hesitation. However, Zastava Trucks were assembled in Hungary, near Pécs, with Iveco engines.
Yugos were facelifted and new versions are introduced in the Belgrade International Motor Show in 2002. The new Zastava Koral IN had a 1.1l 55HP engine with Bosch electronic injection, the transmission designed by Porsche, slightly new internal and external design, improved safety, and many extra details which were missing from former models. Koral In also have Peugeot 1.1L, 60HP engine.
The new generation of Yugo was granted a FIA certificate, so it was in compliance with European standards.
In October 2000, Vojislav Koštunica became the new president of Yugoslavia (also a Yugo Koral owner) and soon after, the sanctions against the country were lifted the exports resumed. The production had fallen to a mere 9 per cent of its pre-1990 230,000-vehicle annual capacity, with exports at around 4,000 vehicles. The new Yugoslav government embarked on a $50 million reorganization effort in cooperation with the World Bank, which resulted in mass layoffs, aiming to privatize the company.[11]
Cancelled project: Zastava Motor Works
In 2002, the American entrepreneur Malcolm Bricklin, who had previously imported Yugo into the United States, signed a deal with Zastava to reintroduce the company's products into America.[12][13] Bricklin's intention was to sell the cars for less than $10,000 under the brand name ZMW (as in Zastava Motor Works). Even though a website proclaiming the brand's arrival was produced by Bricklin's company, by 2006 his intentions had switched to importing products from Chinese car maker Chery instead.[14]
Also there were produced some unknown models from the beginning of the 1990s and after 2000 as the respond of new market demands. Such models were:[15] Yugo GV Turbo (90's), Yugo Electra (90's), Zastava Koral In (euro-concept), Zastava Globus Koral In (electromobile), Zastava Florida Caravan, Zastava Florida Sedan.
2005–2008
Zastava automobiles have been sold and exported in Serbia, Bosnia and Herzegovina, Montenegro, Croatia, North Macedonia, Greece, Bulgaria, Lebanon, Libya, Syria, Ecuador, Tunisia, Poland, and Egypt (where Zastava cars were produced under the marque of the state owned Nasr car company). CEO of Zastava cars Zoran Radojević has declared that the company has received offers from African countries for technology transfer. It is believed that Congo was interested in starting production of the Zastava Florida and Egypt of the Zastava 128.
In October 2005, an agreement with Fiat was reached for production of the Fiat Punto by Zastava for Eastern European markets, which would be commercialed as the Zastava 10.[16][17] The Koral IN L, with a fuel injected 1.1 L Peugeot engine, met the European Union safety standards in a test supervised by the German
2008 shutdown and bankruptcy
Fiat Group Automobiles (FGA) has signed a memorandum of understanding with the Serbian government for the acquisition of Zastava's Kragujevac plant on 7 May 2008. The memorandum of understanding foresees a new company being set up in which the Italian group would have a 67% of stake and the Serbian government acquiring 33% of stake in the new company. A new company was named Fiat Automobili Srbija.
The new company would make a total investment in the region of 700 million euros, with the government contributing 200 million euros to this. The Zastava plant would produce two new Fiat models, rejecting previous reports the plant could produce the 500 compact city car.[20]
The last Zastava branded car rolled out of the factory on 21 November 2008.[21]
In May 2017, Group Zastava Vehicles, consisted of Zastava Automobiles, Zastava Trucks, Zastava INPRO and Zastava Special Automobiles, filed for bankruptcy before the Economic Court in Kragujevac.[22]
Group Zastava Vehicles and its subsidiaries entered a bankruptcy procedure in 2018, with the Group itself auctioned and sold in March 2024.[23]
