During the summer of 1985 the Yugo went on sale as the cheapest car sold in the USA. With a base price of $3990, it was thousands cheaper than the next car up.
By the time 1500 cars had arrived dealers had orders for 5 times that amount. First year sales fell well below what was predicted, but rose in the second year.
They also pointed out a series of flaws, and as it happens many of the flaws were valid. Many owners complained of mechanical problems including premature engine failure, bad brakes, poor shifter and transmission, and faulty electrical systems, and terrible dealer service. The insurance industry faulted the cars crash worthiness, which didn't help matters.
In early 1989 Yugo America went bankrupt, which threatened to remove the Yugo from the USA. No 1989 models were imported, so dealers sold leftover 1988 models.
in the end, Yugo faced a massive recall of the over 126,000 vehicles sold in the USA
