- Yugo revealed an AI-generated Cabrio concept on social media.
- The company denies rumors of rebadging Chinese products.
- A drivable hatchback prototype has been scheduled for 2027.
The Yugo revival has gone topless, and the internet has opinions. A year after the cheap hatchback concept that put the nameplate back in circulation in 2025, the company has posted AI renderings of a Yugo Cabrio and called it a design study for the future.
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This latest teaser builds on a project spearheaded by German marketing professor Dr. Aleksandar Bjelić and Serbian designer Darko Marčeta, who acquired the Yugo trademark rights to create budget-conscious subcompact offerings. Last year, the company showed sketches and a scale model of a two-door hatchback, promising that the first drivable prototype would arrive in May 2027.
A Second Bodystyle Before The First Car Exists
While we wait for the big reveal, Yugo is experimenting with an extra bodystyle. After images of a two-door convertible surfaced earlier this year, the company published an AI-generated video of a five-door Yugo Cabrio crossover on its official LinkedIn profile.
Yugo Automobile / LinkedIn
The digital creation looks different from earlier Yugo concepts, though it keeps the signature step and black trim under the headlights, plus the Y emblem on the illuminated grille. The silhouette recalls the discontinued VW T-Roc Cabriolet, with a few nods to the original Yugo Cabrio from the late ’80s.
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The headlights give off strong Dacia vibes, while the stance is crossover-like thanks to the raised ground clearance and the plastic cladding on the bumper and around the wheel arches. By contrast, earlier Yugo Cabrio renderings depicted a sportier low-slung vehicle with two doors. Both iterations have a four-seater cabin and a folding soft top.
What The Company Will And Won’t Say
Yugo Automobile / LinkedIn
The company didn’t get into specifics but said that the new Yugo is “designed for a new generation, developed with modern technology and with the ambition to make exciting mobility accessible again.” Earlier reports suggested that the production model would be fitted with gasoline and electrified powertrains, offering a choice between manual and automatic transmissions.
Denials In The Comments Section
Some commenters asked whether the reborn brand would simply rebadge existing hatchbacks from Chinese automakers such as Dongfeng. Yugo Automobile pushed back, insisting the new model is an independent project and that sourcing parts globally won’t dilute its DNA.
Yugo Automobile
Rather than shying away from online cynicism, the brand leaned into self-deprecating humor. A LinkedIn user poked fun at the brand’s reputation referencing the heated rear windows designed to keep your hands warm while pushing a broken-down car. Yugo replied they will definitely include this feature to the new generation, continuing the legacy of the original.
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Another commenter said the smell of barbecue in the back seats would be the only thing separating the new Yugo from a Chinese hatch. The brand jokingly replied that it would fit an integrated BBQ so occupants can grill ćevapi on the move.
Whether any of this reaches a showroom is another matter, as is the platform underneath it and where it would be built. Serbia is the stated home, but the supply chain question hangs over everything.

