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Runtime: 11:10
0:00 OMG, They’re Bringing Back the Yugo!
1:30 My (Years Ago) Yugo Plant Tour
2:25 Corvette Interior Gets A New Look
3:29 Bollinger Files for Bankruptcy
5:28 Brembo Cuts Brake Emissions 90%
6:23 EU Automakers Get CO2 Break
7:12 Ford Raises Prices on Maverick, Bronco Sport, Mach-E
8:52 Tariffs Hiking Used Car Prices
9:37 AAH Looks at Brands That Could Be Forced Out of U.S. Market
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OMG, THEY’RE BRINGING BACK THE YUGO!
Believe it or not, a group of investors in Serbia wants to bring back the Yugo. Everybody remembers the Yugo, but for all the wrong reasons. The car was so underpowered and unreliable that it kicked off a slew of jokes. Why do Yugos have rear window defrosters? To keep your hands warm when you push them. What do you call a Yugo with a sunroof? A dumpster. And yet, despite being the butt of a lot of jokes, an EV startup called Elektromobilnost Balkanika, which is working with engineers and designers who used to work at Zastava, the government-owned company that originally built the Yugo, are going to launch a compact BEV hatchback that will be priced under €15,000. And they’re going to call it the Yugo Next. It’s a modest car, with a 40 kWh LFB battery that will deliver somewhere between 250 or 300 kilometers of range. Let’s call it 170 miles. 0-60 takes 12 seconds, which is rather slow. Top speed is 87 miles an hour. But for just driving around town, who needs more than that?
MY (YEARS AGO) YUGO PLANT TOUR
Years ago, back when the factory was still part of Yugoslavia, I was invited to take a tour of the Zastava factory in Kragujevac. You couldn’t take any pictures outside of the plant, because it was part of a giant industrial complex that also made artillery pieces and ammunition. The car assembly plant was like stepping back in time by at least a half a century: dirty, dark and noisy. I did a walking tour with the plant manager and I was actually able to point out a few simple things of how he could improve his quality and productivity. At the end of the tour he thanked me profusely and for years after that I always got a card from him around Christmas time saying I was welcome to come back any time I wanted. I never did get back there, but always appreciated the gesture.
CORVETTE INTERIOR GETS A NEW LOOK
OK, back to the news. When the C8 Corvette came out it earned all kinds of accolades. But some critics felt the interior wasn’t quite up to snuff, like the center screen looking kind of cheap and the center console grab bar having too many switches. So the 2026 ‘Vette gets a thoroughly refreshed instrument panel with a larger center screen, a larger instrument cluster and an additional touch screen added to the left of the steering wheel. All the switches on the grab bar are gone and a couple of cup holders are added to the console. The displays also feature cleaner graphics and new animations. There’s a heavy emphasis on improving the quality look of the interior with double stitching everywhere, more finely crafted details and brighter colors. The enhancements go across the Corvette lineup, including the Stingray, E-Ray, Z06, and ZR1.
BOLLINGER FILES FOR BANKRUPTCY
It looks like another EV startup could be about to bite the dust. The Detroit News reports that Bollinger Motors is filing for bankruptcy. A court-appointed receiver will take control of the company’s daily operations and assets because it’s having trouble making payroll and it faces eight lawsuits from suppliers that are owed money. The guy who founded the company, Robert Bollinger, is also suing the company to recoup $10 million that he loaned to it. Mullen Automotive is now the effective owner of Bollinger Motors but it’s accused of not providing enough funding for day-to-day operations. The current CEO, Bryan Chambers, claims the company is committed to keep the business going and he’s optimistic about the future. But Roush Enterprises, which is contracted to make the trucks for Bollinger, stopped producing vehicles in January and earlier this week locked Bollinger out of its facility and is moving to evict it because it’s owed $1.8 million. So, it sounds like we’re coming to the end of the road for Bollinger.
BREMBO CUTS BRAKE EMISSIONS 90%
Europe has new regulations that require automakers to reduce brake dust by 90%. So Brembo is coming out with a new type of discs and pads that cut those emissions at the same time they boost performance, durability, and rotor rust. The Euro 7 emission standards that go into effect next year tackle brake dust because it includes microscopic particles that can embed themselves deep into your lungs and cause all kinds of respiratory problems. Brembo says it was able to achieve that thanks to a new process that applies two-layers of nickel-free coating on the disc rotors using a laser beam. That reduces surface wear by 80% compared to an uncoated cast iron disc. Brembo says the new brakes can be used with any kind of vehicle.
EU AUTOMAKERS GET CO2 BREAK
European automakers just got a big break. The EU officially approved rolling back CO2 emission rules, to a degree. Automakers can now meet 2025 CO2 targets over the next three years, instead of having to hit them this year. Automakers aggressively lobbied to soften the rules because they claimed they faced fines up to €15 billion for missing targets. And while the ACEA, which represents European carmakers, applauded the approval, it says the industry actually needs a lot more long-term support from the EU in terms of charging infrastructure and incentives for purchasing EVs, if it;s ever going to meet those CO2 targets.
FORD RAISES PRICES ON MAVERICK, BRONCO SPORT, MACH-E
Well, you just know we can’t let a day go by without doing an update on the tariffs, since they’re having such an impact on the industry. Here’s the latest. Ford is raising the prices of the Maverick, Bronco Sport and Mach-E by $2,000. That’s because they’re all made in Mexico and are now hit with a 25% import tariff. But Ford is clearly eating a big chunk of the cost because we estimate the Maverick and Bronco Sport are getting hit with at least a $5,000 tariff and the Mach-E is probably double that. As we already reported, Ford says the tariffs will add about $2.5 billion in costs this year, GM says it will be $4-5 billion, and this morning Toyota announced that the tariffs will shave its profits by at least 21%, which is staggering. Last year Toyota posted a $31 billion operating profit, which means the tariffs could cost it $6 billion. Here’s one bright spot. President Trump announced today that he’s secured a trade deal with the UK, and we think that probably means that cars imported from England, including Jaguars, Land Rovers, Minis, Bentlys, Rolls-Royces, McLarens, Aston Martins and the other small specialty marques will only get hit with a 10% tariff, not 25%. Since they were already paying a 2.5% tariff, that’s only a 7.5% increase, which I’m sure is something they can all live with.
TARIFFS HIKING USED CAR PRICES
Even though those tariffs are only getting slapped on new imported cars, they’re actually starting to have an impact on the used-car market. According to Cox Automotive, wholesale used prices in April were at their highest level since October 2023 because dealers bought more used vehicles at auction because they expect more shoppers to buy used, as new car prices go up because of the tariffs. That started a bidding war that drove up prices for used cars. Cox doesn’t expect prices to decline much in the second quarter because wholesale inventory is tight and retail sales of used cars are running stronger than normal.
AAH LOOKS AT BRANDS THAT COULD BE FORCED OUT OF U.S. MARKET
Hey, before we go, be sure to tune in to Autoline After Hours later today. We’re going to have Huibert Verhoeven, from HARMAN Automotive talking about the latest developments in digital cockpits in cars. Paul Waati of AutoPacific will also be on the show. We’re going to be digging into the car brands that could be forced out of the U.S. market because of the tariffs, how they might try to salvage the situation, and the new car sales hangover that’s sure to hit around July,
With that, we wrap up today’s show, thanks for tuning in to Autoline Daily.
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I was in high school when the original Yugo came out. Sales were so terrible that they offered two for the price of one.
One of my classmates parents bought him two Yugos. Being that we were teenagers and stupid he decided to try and destroy one of them. If memory serves he was successful in destroying the first one without trying it to hard. I can’t remember if the second one survived. 😂
John, interesting report on your Yugo plant tour. Did the plant have dirt floors, or maybe wood brick?
The C8 interior was criticized for the long row of HVAC controls between the seats, but I liked the design ok. I’ll be checking out the new interior
@Autoline Team on trade deal with the U.K.: the administration said that “the details still have to be worked out.” I suggest we hold our judgment until the deal is actually made and we know the exact terms. And let’s compare the terms then with those other countries trading with the United Kingdom have.
We shouldn’t forget Lada and other fine examples of automobiles that are on the Yugo level. There’s a bunch from the U.K.’s past too. If entrepreneurs think a historically abysmal reputation is a fine starting point for a new vehicle, there’s just so much choice it’s hard to pick.
The Yugo started life in the USA as a punchline. As time has passed, memories faded, the cars disappeared, and there was a level of nostalgia built up about it. Show up to a cars and coffee in a nice condition Yugo and you will be the darling of the show. A reintroduction would not be a bad idea if they can make it reliable and have reasonable quality. The price is right and the slow acceleration is just fine for a runabout car. Probably not going to be a highway cruiser, but neither was the original Yugo. Put in enough tech gee whiz stuff to make it attractive and you have a winner. Their target market is urban drivers that are likely to never take their Yugo outside of the city but they need a cheap runabout to accomplish their day to day tasks. Technically the same target audience way back when. At least when they put the spare tire in the frunk of this car it won’t be cooked by engine heat or sprayed with oil/coolant.
@MERKUR DRIVER on Yugo: yes, there is probably a market for a cheap, low maintenance cost daily driver. I would suggest not to cross the Mackinaw Bridge on a windy day with it, though 🙂
So car tariffs going up by 4x, 2.5% to 10%. Lipstick 7.5% on a pig. Guess I’ll have to settle for 2 cars for Christmas instead of 30.
Wim, being an EV, the new Yugo will be heavier, so it might be ok on the bridge.
@Bob Wilson on import tariff: well, this only applies to British-made cars, so only the Rolls Royce, Bentley, Aston Martin, McLaren and lastly the Range Rovers you were planning on buying 🙂
@Kit on Yugo: you are right about that. I wonder whether that vehicle will make it to the US or is meant for European markets.
Mini would probably be most affected of British brands. Some, but not all of the models are still from the UK. Buyers of Rolls-Royce, Bentley, and McLaren won’t notice a $75K price increase.
Disappointing that ACEA is acknowledging the cold, hard economic reality and rolling back 2025 emissions criteria. I was really enjoying their insane march to self immolation ( though I’m sure China enjoys it even more).
It’s as if they don’t really believe all that climate doom they preach. I mean 15 years ago we only had 10 years to save the planet, then it was 2, then somehow back to 10 , and now they’ve learned not to throw out dates because they always pass by without us all having drowned in melted ice caps.
But damnit, Leo DeCaprio called from his plane and demands that we all bicycle. Harrison Ford landed one of his copters long enough to berate all us simpletons for not doing our part. And now ACEA is threatening Net Zero with their lack of faith. As Greta would say,”How dare you!”
I’m one of those who thinks climate change/global warming is real, but even without the current anti-environmental extremists running the US government, it will continue. Sea level will rise, and while I will be long gone, most of what is now coastal Florida be under water and depopulated, as will areas throughout the the world. Yeah, “alarmists” have said it will happen sooner than is likely, but it is happening. America’s truck fetish is speeding it up slightly, but not enough to really make any difference.
Since Ford has increased the price of the Maverick by $2K per year since it launched, what was their prior excuse for raising prices? It is convenient for them to blame the recent $2K price increase on tariffs, but what about the $4K in increases over the last 2 years? Raising the price of the Maverick by $2K is awfully consistent with what ford has done every single year since it was launched. I guess I am not convinced that Tariffs are the issue on the Maverick but it sure is a convenient excuse for them.
Probably Ford has raised prices on Maverick the past two years to take advantage of its popularity, rather than having the dealers take advantage as much with “extra dealer profit.”
As far as the current price increase, Ford is “eating” part of the tariff, or Maverick would go up more than $2K.