Supposedly they've been back in the U.S. for a couple of years now...

http://www.forbes.com/2002/04/23/0423yugo.html

and it seems you hit the nail on the head:


The Zastava Motor Works factory was partially destroyed in 1999 during NATO air strikes against Slobodan Milosevic's regime, but was able to continue to make cars that it sold in the former Yugoslavia. Bricklin says the factory has been rebuilt and the company will be able to supply the U.S. market within a year.




>>There used to be a joke about the Yugo in the U.S. when they first started buying them in the U.S. and Canada. Everyone was saying that it should have been named 'NoGo' instead of Yugo back then. I think it has a better image now.
>
>I thought it had just been forgotton. I haven't seen one in years. I wonder if they still build them. Or did NATO blow up the factory?
>
>The Yugo suffered here because it immediately had to compete with the Hyundai, which cost only a little more and was nicer (so I read - I drove an early Hyundai and thought it was horrendous).
>
>I read somewhere that Yugo pulled out of the American market very abruptly. Dealers just found the distributor's phone disconnected one day.
>
>Perhaps Dragan will share some Yugo jokes with us. I know he has at least one.