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• W210884043 abstract "There Yugo . . . again Can a lemon become an orange, and if so, will people buy it? Consider Yugo. August 1985, average price of a new car was about $11,000. Enter Yugo GV (Great Value), with a base retail price of $3,990. When buyers crowded showrooms, no-frills econobox by Yugoslavian automaker Zavodi Crvena Zastava appeard to be backlash of choice for those experiencing sticker shock. were hoping Yugo would be a jaunty little guy, says Dennis Simanaitis, engineering editor of Road & Track magazine. But it wasn't fun to love. was really cheap and tacky. There's cheap as in low quality and there's cheap as in inexpensive, Motor Trend declared in 1985. With Yugo, you get both. March 1986, Yugo's image was further undermined. The car failed a federal 35-mph crash test, and 12,512 GVs were voluntarily recalled for improper installation of seatbelt retractors. Hope springs eternal Last summer, Mabon, Nugent & Co., New York securities and investment firm, acquired Yugo America for $40 million in hopes importer can turn a profit. The new owners are pumping millions into company, and simultaneously streamlining and reorganizing operations. Efforts to reduce overhead have included staff cuts at Yugo America headquarters in Upper Saddle River, New Jersey. addition, 823 changes were made in Yugo between 1985 and 1988. Yet, it's still getting poor reviews. tested a Yugo in 1986, soon after it came on market, Consumer Reports stated in its February 1988, review of Yugo GVS. It was then a grab bag of barely assembled nuts and bolts--among worst cars we'd ever tested. We tested another one this year because hope springs eternal. But, concluded report, If you can overlook way Mthe Yugo GV isN put together, you're sure to tire of its weak performance, barely operable transmission, and Spartan accommodations. The money saved in buying a Yugo may well be spent in maintaining it. Clearly, turning around mini's image remains a formidable task. Sales dropped from a high of 48,812 in 1987 to about 30,000 in 1988. And Yugo America has to compete against such giants as Hyundai, which is selling 250,000 subcompacts a year. Stuck in neutral Tony Ciminera, Yugo America's vice president of product development and public relations, admits that three-door hatchback has a way to go to become popular. He predicts that 1989 will be a transitional year for company, predominately because it's in midst of another buyout. This time, Zavodi Crvena Zastava is negotiating to buy back control of Yugo America from Mabon, Nugent. Ciminera cannot discuss whys and wherefores of deal, but result, he says, is that budgets--and therefore public relations strategies--are still up in air. Even major developments regarding Yugos at present are getting limited public relations support because of budgetary uncertainties, according to Ciminera. One such program is Yugo America's four-year, 40-thousand-mile warranty on 1989 models. In first year or first 12,000 miles, says a press release from company, the Yugo owner just has to buy gas. All maintenance, oil changes, wheel balancing, wheel alighment, and mechanical adjustment . . . will be covered, as well as replacement of standard parts. Time called this perhaps most generous auto warranty ever. Yet, Yugo's public relations efforts for warranty so far have had to be limited to press releases sent to automotive and business media (print and broadcast), and a brochure on warranty given to dealers for distribution to customers. Another major development for 1989 is Yugo's spring introduction of Cabrio, an $8,300 convertible. Again, however, aside from standard fare of press conferences to introduce car, press kits, and press road tests, Yugo has been able to do little on public relations front. …" @default.
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• W210884043 date "1989-02-01" @default.
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• W210884043 title "There Yugo. Again" @default.
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