After many decades of producing different car and truck models under the Zastava brand, the company ceased all vehicle production in 2008.

Its final model, the Yugo Sana, was styled by Italian designer Giorgetto Giugiaro and launched in 1988, but its production was cut short by the Yugoslav wars.

The post-Yugoslav era has been difficult for Zastava, just as most of the other major companies based in Serbia, which suffered from hyperinflation, international sanctions, and economic mismanagement.

Production came to a halt in 1941 with the Axis invasion of Yugoslavia and, by then, 400 trucks had come out of the factory which consisted of a working force of 12,000 men.

[3] After World War II, the plant was renamed Zavodi Crvena Zastava ("Red Flag Factories").

In a referendum held on August 26, 1953, 96% of the employees of then Zavodi Crvena Zastava voiced their desire to produce automobiles.

With all-around disc brakes, rear-wheel drive and up to 72 horsepower, the "tristać" was Yugoslavia's favorite upmarket car.

The floorpan of the 1300/1500 was used as the basis for the Polski Fiat 125p, which was produced by Polish FSO from Zastava CKD kits.

A $10 million investment pushed annual capacity to 85,000, with plans in place to reach 130,000 units within a five-year period.

Yugoslavs used to buy it because of its moderate price, simple mechanics, cheap spare parts and low maintenance cost compared to other cars assembled in Yugoslavia.

In 1979, the Zastava 750S – (Special) was released which offered updated interior controls and switches, a new steering wheel and a sportier 22 kW (30 hp) engine which raised the car's top speed to 120 kilometres per hour (75 mph).

In 1980, the Zastava 850 was launched, with a 23.4 kW (31 hp) 848 cc engine propelling it to 125 km/h (78 mph) and a fully synchronized transaxle.

Its exterior was designed by Giorgetto Giugiaro, with a body shape similar to a Fiat Tipo (1988) or Citroën ZX (1991).

In 1999, during the Kosovo War, NATO bombed the factory in Kragujevac, Serbia because Zastava Arms was a major military supplier to the Serb government.

[10] After the war, there were trade talks with Hungarian firms to assemble Yugos in Hungary, but no agreement was reached because of the Yugoslavian partner's hesitation.

In October 2000, Vojislav Koštunica became the new president of Yugoslavia (also a Yugo Koral owner) and soon after, the sanctions against the country were lifted the exports resumed.

The new Yugoslav government embarked on a $50 million reorganization effort in cooperation with the World Bank, which resulted in mass layoffs, aiming to privatize the company.

In 2002, the American entrepreneur Malcolm Bricklin, who had previously imported Yugo into the United States, signed a deal with Zastava to reintroduce the company's products into America.

Even though a website proclaiming the brand's arrival was produced by Bricklin's company, by 2006 his intentions had switched to importing products from Chinese car maker Chery instead.

Zastava automobiles have been sold and exported in Serbia, Bosnia and Herzegovina, Montenegro, Croatia, North Macedonia, Greece, Bulgaria, Lebanon, Libya, Syria, Ecuador, Tunisia, Poland, and Egypt (where Zastava cars were produced under the marque of the state owned Nasr car company).

CEO of Zastava cars Zoran Radojević has declared that the company has received offers from African countries for technology transfer.

[16][17] The Koral IN L, with a fuel injected 1.1 L Peugeot engine, met the European Union safety standards in a test supervised by the German Technischer Überwachungsverein (Technical Monitoring Association).

[18] After that day, the only car in production was to be Zastava 10 which has had its front part slightly modified and its name was changed to Punto Classic.

Zastava signed an agreement with General Motors to produce the Opel Astra G, but despite the start of industrial tests in Kragujevac, the project was eventually aborted.

[19] Fiat Group Automobiles (FGA) has signed a memorandum of understanding with the Serbian government for the acquisition of Zastava's Kragujevac plant on 7 May 2008.