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Limited Warranties

88yugo01

NUMBER: WTY-27

DATE: 1/27/88
SUBJECT: LIMITED WARRANTIES - 1988 VEHICLES
Yugo America, Inc. has improved the Limited Warranty coverage and, additionally, established new warranty coverage for the powertrain. These limited warranties become retroactive to include all 1988 vehicles retailed on or after January 1, 1988.
COVERAGE UNDER THIS YUGO LIMITED WARRANTY CONSISTS OF:

BASIC LIMITED WARRANTY The vehicle is warranted to be free of defects in materials
or workmanship for a period of 12 months or 12,000 miles, whichever occurs first, beginning with the date the vehicle is first put into service with the first retail purchaser.

Covered Yugo will repair or replace all parts and labor necessary
to correct a defect in materials or workmanship provided the Yugo is presented to an authorized Yugo dealer for repairs.

Excluded Non-Yugo accessories; misuse; abuse; accident; neglect;
or use of vehicle in competition.

ADJUSTMENTS Adjustments are covered for 12 months or 12,000 miles,
whichever occurs first, beginning with the date the
vehicle is first put into service with the first retail

purchaser.

Covered Including, but not limited to: Front and rear wheel
alignment; wheel balance; drive belt tension; ignition timing; idle speed; door/hood/hatch strikers; windshield washers/wipers; exhaust system alignment; headlights; clutch free play; handbrake.

Excluded Any adjustment necessary due to misuse; neglect; abuse;
accident; or use of vehicle in competition.

WEAR ITEMS Items subject to normal wear are covered for 12 months or
12,000 miles, whichever occurs first, beginning with the date the vehicle is first put into service with the first retail purchaser.

Covered Including, but not limited to: clutch disc; brake pads/shoes;
windshield wiper blades; bulbs; fuses; drive belts; spark plugs; filters.
WEAR ITEM


Excluded Any item worn past its serviceable limit due to misuse;
neglect; abuse; accident; or use of vehicle in competition. Also, any item which has experienced normal wear but is still within its normal serviceable life.

MAINTENANCE All recommended scheduled maintenance is covered for 12
months or 12,000 miles, whichever occurs first, beginning with the date the vehicle is first put into service with the retail purchaser. (Also, vehicles sold after use as a registered demonstrator with Yugo America will include the 15,000 mile service).

Covered Oil; filters; any parts and labor necessary to perform
the recommended scheduled maintenances.

Excluded Gasoline.

COVERAGE UNDER THIS YUGO LIMITED WARRANTY CONSISTS OF:

ENGINE

All internally lubricated components including:

* Pistons
* Piston rings
* Piston pins
* Crankshaft/main bearings
* Connecting rods/rod bearings
* Camshaft
* Timing belt sprockets
* Timing belt
* Valves
* Valve springs
* Valve guides
* Valve seats
* Tappets
* Oil pump

* Oil pan
* Valve cover
* Dip stick and tube
* Engine mounts
* Timing cover
* Camshaft housing
* Head gasket

TRANSMISSION

All internally lubricated components including:

* Bearings
* Bushings
* Shafts
* Spacers
* Main shaft
* Main shaft gears
* Synchronizers
* Driven gears
* Internal shift linkage

* Shift lever
FINAL DRIVE

All internally lubricated components including:

* Pinion gear
* Ring gear
* Differential a'ssy
* Tri-pod joints
Note: Coverage will be extended to the Cylinder head, Engine block, Transmission case and covers, external transmission linkage, and the Final drive housing if these components are damaged as a result of the failure of a covered internally lubricated part.

THERE IS A $25.00 DEDUCTIBLE CHARGE FOR EACH SEPARATE REPAIR VISIT, TO BE PAID BY THE RETAIL OWNER.
OTHER IMPORTANT REFERENCES

Warranty Policies and Procedures Manual

Service Time Schedule/Warranty Coding Guide

Owners Manual