Nation : Yugo Dealer Files Bankruptcy

Global Motors Inc., the nation’s distributor of low-priced Yugo automobiles, said today it had filed to reorganize under Chapter 11 of the Bankruptcy Code.

The New Jersey import company will be taken over by Zestava, the Yugoslav producer of the subcompacts, Yugo officials said at a convention of the National Automobile Dealers Assn. Global owns 97% of Yugo America Inc., which was formed just over three years ago to distribute Yugos in the United States. Zestava plans to continue importing new Yugo autos, said Global’s acting chairman, Marcel Cole. Critics have called the trouble-plagued Yugo “the worst car in America.” (Story in Part 4, Page 2.)