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weekender february 7 1987 p41 yugoslav car firm chooses markham by alex law yugo cars of canada has chosen markham as its office site and is busy selecting deal ership locations to begin selling its 6000 yugoslavianbuilt cars this spring president and principal own er don mcarthur says two of the frontwheeldrive threedoor yugo gls will be at the toronto auto show from friday feb 20 to sunday march 1 while prospective buyers ogle the cars in the metro toronto convention centre mr mcar thur and his growing head office staff will be busy signing up and training the 10 dealers wholl be selling and servicing the vehi cles this spring by the end of the year yugo plans to have another 10 deal erships mostly in the golden triangle and montreal areas 100 formal applications weve had literally hun dreds of enquiries for deal erships mr mcarthur says and about 100 formal applica tions the first dealerships will mostly be stand alone opera tions though mr mcarthur sees no problem with yugo deal ers carrying other cars so long as theyre not selling sub- compacts for under 7000 hyundai for example mr mcarthur says when the vehicles brought in from the soviet bloc are excluded the yugo is at the bottom of the im- port price list meaning japanese korean and western european cars are more expen sive when talking about yugosla vias political status hes very forceful its not a sovietbloc country he says its neutral and independent its not part of the comicon the equivalent of the european common mar ket and not part of the varsaw pact emphasis on exports yugoslavia is known as a non- aligned communist country further mr mcarthur main tains that the government there hasspent a significant amount of money in automotive de velopment because it knows how important an export item cars can be the yugo he maintains is a unique and original yugosla vian design with technology thats tried and true after 20 years of manufacture some of that technology in cludes a 11litre transverse- mounted overheadcam engine that turns out 55 horsepower at 6000 rpm it has fourwheel independent suspension macpherson struts in the front rack and pinion steering and a fourspeed stick- shift in canada the fourseater yugo is an unknown quantity but in the united states critical response has been cool road test results in its annual road test issue road track magazine ran the yugo up against 11 other eco nomy cars all of which can be bought for under 7000 in the us after road tracks tests the yugo was dead last in 14 of the 20 ratings and as a new car it just doesnt come close to the others its low us cost 3990 was noted as a strong feature though its too early to assess even more important aspects of durability and resale value in the chart outlining tester preference the yugo was last when the considerations were priceindependent and last when the considerations were pricedependent on the plus side the magazine noted that the yugos rough simple appeal makes it kind of fun to look at and its handling characteristics were judged to be several cuts above a couple of its rivals expectations high mr mcarthur expects to sell 3000 yugos between now and the end of the year and is hoping to increase that to 7000 in 1988 when supply loosens up at the moment the yugo car- ries a oneyear 20000- kilometre factory warranty but mr mcarthur is looking at ex tended warranties for more than one year yugo canada service person nel are in yugoslavia now learning how to service the cars and when they return theyll open up a school in the markham factory to train the dealer networks mechanics theyll have plenty of parts to work with mr mcarthur says because of his insistence that the dealers have three months worth of stock on hand head office will carry eight months worth of parts and theres twiceaweek flights from bel grade if an emergency shortage occurs the warranty on yugos bought in canada is valid in the united states business directory the classic of log homes unionville broadloom 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