KRAGUJEVAC, Serbia – Zastava Automobili, the former Yugoslavia’s only car maker, has begun production of cars with PSA Peugeot Citroen gasoline engines. The Yugo Koral small car receives a 1.1L 60 hp engine, while the larger Florida car will be powered by a 1.6L 98 hp engine. The company already has imported 100 1.1L engines and 50 1.6L engines. An additional 300 engines (200 1.1L and 100 1.6L) are on the way. Future engine orders, company officials say, will depend on ...

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