The attempt at market socialism ended in disaster. It destroyed the Zastava, which was also favored by Czechs.

The Zastava 101, produced in Kragujevac, Serbia, marks its 55th anniversary, having been a significant model in Yugoslav automotive history. Initially a Fiat 128, its production was influenced by political dynamics, particularly the rift between Tito and Stalin, which allowed for a unique economic model in Yugoslavia. The establishment of the Zastava factory was a result of workers' self-management, leading to a partnership with Fiat for vehicle production. Despite initial tensions with Italy, a deal was reached in 1954, paving the way for the production of various Fiat models, including the popular Fiat 600. This collaboration significantly impacted Kragujevac's development, although the rigid communist structure limited true worker self-management, leading to economic stagnation.