Business Notes BANKRUPTCY

When the Yugo subcompact was introduced into the U.S. four years ago, its promoters billed it as the next Volkswagen Beetle. But last week Global Motors, importer of the Yugoslav-made car, filed for Chapter 11 bankruptcy protection. The car's initial allure was its low base price, which started at $3,990 in 1985 and is now $4,349. But the car ran into competition from South Korea's Hyundai Excel, which began selling at $4,995 in 1986.

Moreover, the Yugo's reputation went downhill because of its bumpy handling and lack of amenities. Sales slumped from 48,532 autos in 1987 to 31,546 last year. Even so, the manufacturer, Zavodi Crvena Zastava, plans to take over its U.S. importer's operations and continue selling the car.