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Every once in a while, a visionary, iconoclastic automotive pioneer bursts on the scene and, bucking the long odds and naysaying “conventional wisdom”, delivers a disruptive new line of cars. The Bricklin SV-1 was remembered for several interesting features: lurid (“safety”) colors , no cigarette lighter (Bricklin was a rabid non-smoker) , and most importantly, the ability to vacuum piles of money from the gullible government of New Brunswick, Canada.
But before Bricklin made a virtue of safety, he all but made a mockery of same just a half decade before. To say that the 360 was unsuited to American driving norms is to wildly overpraise the car. As noted, Bricklin first noticed the subcompact Yugo on the streets of London and within a couple of months, he had set up his first meet and greet with the management at Zastava . What he saw was an operation that turned out a car designed (and abandoned) by Fiat years before. Just as quickly as the Yugo ascended to number two in european import sales, the car plummeted back to earth and never rose again.
The car itself staggered on until early 1992, with steadily declining sales and a dealer network that was slowly (and then quickly) going bankrupt. There are lots of related legacies connected with America’s brief, mad affair with the Yugo.
Yugoslavia– The “Land Of The Southern Slavs” went to war with itself in late 1991 and essentially spent the next 17 years shooting, ethnically cleansing and generally behaving like it had before World War I. Yugo America– The importer of the eponymous car that had been the talk of the industry just a few years earlier filed for chapter 7 bankruptcy liquidation in 1991. Malcom Bricklin– The twice bankrupt Bricklin has resurfaced periodically over the years, always pushing the latest crack brained scheme to sell a car that would occupy the place that his Yugo once did- the bottom rung of the American market. I know this is hardly the point of your blog entry, but as someone with a passionate interest in the region, I’m compelled to mention that Yugoslavia broke apart mainly due to its heavy debt burden. Honestly, I think Zastava should be commended for the amount of engineering they were able to do independently, modifying and developing Fiat cars.
My point is more that while suited for its home market, the Yugo was a cynical attempt by its promoter to make a quick buck by appealing to the most fickle, least loyal of all purchasers-the price shopper.It is only coincidental that the car was built in Yugoslavia.
Possibly most accurate and realistic analysis I have heard yet regarding what happened in ex-Yugoslavia. I would like to add that once money was in short supply, it was easy to lay a blame on the other side, to stir old misunderstandings and conflicts, send kids to London or USA and start profiting from the war. In 1969, Subaru started producing a larger, much more traditional (well, mostly) car, the 1000. Another factor was that Subaru managed to kick Bricklin out on the street and take over distribution and marketing before he ran it into the ground. Of course, as pointed out, it was more probable that he’d have put the company out of business, too.
Subaru was just a little behind the curve in terms of design and safety…as befits a smaller company.
In regard to that old devil corrosion, an honest question: were there any cars of the seventies that DIDN’T rust like mad? Ive got a couple of rusted out British cars one of which I repaired The rust was caused by poor window sealing on both water rusted it way out however the spares one was driven full of rust which spread it all through the unpainted box sections. But for all that, and with weight today an even greater issue…our Asian friends seem to have licked the corrosion problem. Those methods have contributed to rust resistance that we have come to expect from modern cars. In the ’70s when I lived in Boston, I worked with a guy whose 5-year-old Pinto had big holes in the doors. My best friend had for a brief time, a rusted 1980 Civic DX hatchback that ultimately blew out its 2 upper gears in the 5spd manual tranny that did it in even though his mechanic could not get the bolts out to replace the clutch due to rust. The 360 fit in with the type of Japanese car that was (or would become) the Kei car class, which continues to this day within tightly-defined parameters. Japanese cars generally started out small, usually around 800cc in the mid 1950’s and grew with the prosperity of the country and desire to chase export markets. How quickly they developed larger cars was a product of how well capitalized each company was and how much their senior management (some of which was deeply conservative, even by Detroit standards) was willing to make the investment in export-specific products. Yep, the N and Z360 from Honda, but when they made them for export, they dropped in a 600cc motor into what was essentially the same car so what we got as did Europe was the N and Z600 with a 600cc motor instead of the 360cc motor, which was the utmost limit in displacement for a Kei car then, and I think now. The sexy Marsha Brady girl with the bellbottoms in the Subaru commercials is unforgettable. There was nothing inherently wrong with the 360, and all the other Japanese manufacturers had a car at the time with more or less similar features. Modern kei cars are dimensionally similar to the old sidevalve english Fords tall and narrow hopefully they dont fall over as easily I see lots of elderly people driving used import keis here. I paid a lot of attention to new cars back then, and even then I don’t know if I ever saw one. I can’t imagine that anybody that test drove one like mine actually laid down real money for one. Around the same time we had a similar thing in Australia – the FSM Niki, which was a Polish-built Fiat 126, so a ~700cc rear-engined s-box. I saw one on the F4 so they did sell one.Those were a Polish Fiat 500 updated Just rubbish. The other Eastern European lemon sold in Australia at the same time as the Niki was the Lada Samara.
My favorite memory was the NYC art exhibit where every sculpture was created from the remains of an old Yugo. Starting from $9,998, the 2015 Nissan Micra has the lowest new-car starting price in Canada. Some people will always tell you that your dollar used to go farther, and that’s somewhat true. When the 2015 Nissan Micra arrives in Canada, its $9,998 price earns it the title of the most affordable new car in Canada. The now ubiquitous Honda Civic was the front runner in a wave of cheap and efficient Japanese compacts. By observing our findings, we can conclude that the Micra is not the cheapest car ever sold, but you really wouldn’t want to drive the cheapest car ever anyways. We encourage all readers to share their views on our articles using Facebook commenting Visit our FAQ page for more information.
This biography of the Yugo reveals how it went from being an appealingly cheap mode of transport to becoming universally regarded as the worst car in the world. The central character is an entrepreneur called Malcolm Bricklin, who has made his living importing cars. Even after motoring journalists had panned it and comedians had incorporated it into the routine, many owners remained happy with their cars. An even more immediate problem was the short lifespan of the American market for tiny cars like the Yugo. While not everyone could afford a Mercedes or a Cadillac, there was also an influx of smaller, cheaper cars that were pitched against the Yugo.
The state of the car industry in the developing world is an increasingly important contemporary concern, and therefore Vuic’s book is timely, even though it deals with recent history. Alan Ashton-Smith has a PhD in Humanities and Cultural Studies from the University of London, where the subject of his thesis was Gypsy Punk. Recreating the amazing confluence of events that produced the Yugo, the author uproariously tells the story of the car that became an international joke, including the American CEO who happens upon the Yugo right when his company desperately needed a new import, the State Department's eager aid to Yugoslavia and much more. March 13, 2010 • The tiny, no-frills automobile imported from communist Yugoslavia during the 1980s is known to most Americans as the butt of many car jokes. Note: Book excerpts are provided by the publisher and may contain language some find offensive.
Frequently, that new model sets the status quo on its ear and forever changes the way we think about (and react to) our transportation needs.
Malcom Bricklin had been knocking around the car industry for over a quarter century when he spotted a Yugo 45 on a London street in 1984. In 1968, Bricklin thought that what America needed was an air cooled two cylinder car that could make zero to sixty in thirty seven agonizing seconds. With just 25 horsepower (at a cacophonous 5500 RPM), the elfin 360 was the type of cynical exercise that would define Bricklin’s career in the car business.
The Yugo was based on a mash up of models 127 and 128 built under license by a wildly unproductive workforce in an obsolete factory with assembly quality that made real mid 70’s Fiats look hand built.
Bricklin had formed Yugo of America to import the car and as was his custom, financial shenanigans were part of the mix.
As the pride of Serbo-Croatia hit the streets of America, reports of slipshod assembly began flooding back to the company’s Upper Saddle River , New Jersey headquarters.
By third world standards, the Yugo was not a terribly bad car and sales continued even after its mother country began breaking up in the early 90’s.
After the death of Marshal Tito in 1980, long simmering Balkan feuds became a way of life and continue there to this day.
Since Yugo America was basically just a collection of cheap office furniture and unanswered phones, creditors received essentially nothing for their interests in the company.
His last notable brush with the automotive world (in 2004) involved a vague alliance with (uh-oh) Chinese auto maker Chery. I would venture to guess that there are fewer than 500 running condition Yugos still on the road in the U.S. In fact, as it became evident that the Yugo was heading toward failure, Bricklin tried to modify and import the Proton from Malaysia to take advantage of low wage rates and favorable exchange valuations that would have made that car an asian version of the Yugo. It began the use of the FWD, horizontal boxer engine which carries on in Subarus to this day (albeit in a modern form).

Edwards Deming was key in Japan’s metamorphosis from a backwards exporter of trinkets and junk to a source for amazingly-high-quality automobiles and electronics.
I assume some were worse than others, but I’ve heard this complaint levied against such a broad range of cars (American, Japanese, Italian, British, even German) of that era that I have to wonder if there was some sort of fire sale on water-soluble steel. Japanese rust problems are designed in the cars are only meant to last 6-7 years and were poorly protected in the factory. I really don’t think that anyone has a competitive advantage in rust resistance any more.
Hell, he only paid something like $500 for a beater commuter car and this was in the late 1990’s. I think that was true of most of the Japanese automakers — the early passenger cars evolved from tiny commercial trucks and three-wheelers, sharing engines with motorcycles. Some Japanese automakers seem to have been surprisingly resistant to the latter; that was a major complaint of Yutaka Katayama at Nissan. IIRC, David E Davis even tried to help move these things by stating in Automobile that he was going to send his daughter off to college in one. Reading in Consumer Reports that the tester injured his toe when the front seat came crashing down on it.
There was a time when Coke was a nickel and gas was 50 cents per litre, but people made less money then and that’s simply the way of inflation.
Ford’s revolutionary assembly practices lowered costs to the level that ordinary working folks could afford. Though under-powered and ill-suited for huge North American highways, the Beetle worked its way into the hearts of many and became a cultural icon in the process.
The Civic employed a smart layout with front drive and a transverse engine so maximize room for occupants. Though its price was low for the times, (still not as cheap as a Micra is today) to Pony never had any real staying power in the North American Market due to dismal build quality and its ability to dissolve in winter like a tab of Alka-Seltzer in water.
The Excel was about as basic as automotive transport could get in 1989 and it made Geo Metros look like Mercedes. Clearly this is not going to be an attempt to make a defence for the Yugo’s shortcomings, or to claim that it was unfairly maligned.
Several factors and a combination of misjudgement and misfortune brought about the Yugo’s demise. While Skoda has now established itself as a manufacturer of quality cars that equal anything sold by Ford or Toyota, the others have admittedly been pushed out of the market.
The economy of South Korea has progressed rapidly, and its car industry has made significant advances; the market share of brands like Hyundai and Kia is testament to this.
Author Jason Vuic's book The Yugo: The Rise and Fall of the Worst Car in History reveals why it's the most famous lemon in automotive history.
Those brave revolutionaries almost single handedly redefine their market segment and leave an indelible mark on the industry itself. Unfortunately, Bricklin was smitten by the car’s simple mediocrity and, just like a cartoon character with outsized dollar signs for eyes, he began the process for bringing the homely little car to the states. The New Brunswick government pulled the plug in September of 1975 and the Bricklin was finished.
Thus American drivers were introduced to the second worst car ever sold- the tiny, dangerously underpowered 360 from Subaru. Introduced at an offer price of just under $1300 , the little Subaru made much of its over 60 MPG fuel economy and low cost of ownership. With no new product in the pipeline, Bricklin would either have to find another car to flog or get an honest job, so there was a mutual meshing of interests when he arranged a visit to the Red Banner Factory in Yugoslavia that turned out the new apple of his eye in 1984.
At first glance, the car looked up to date- Front wheel drive, rack and pinion steering, decent mileage.
Bricklin used franchise fees to run the company (a major accounting no-no) while the car was being modified for safety and emissions certification in the U.S. This was almost $1100 lower than the cheapest Chevy Sprint and lower than even the Hyundai Excel. Substandard seatbelt anchors, collapsing seats, hard starting, no starting, the list was endless. A minor investment bank salvaged Bricklins investment in the venture in a complicated deal that settled some of his stale old debts and sent him far away from Yugo America. Only with the threat of armed intervention by Nato and the UN is an uneasy peace maintained.
Amidst mutual finger pointing, the deal collapsed in July 2008 as the erstwhile partners took turns suing one another in federal court. From the Subaru 360, to the SV1, to the Yugo, up to Chery, he followed the time-honored scammer’s credo of taking as much money as he could through charm and charisma, and when the going got tough and his shell-game started coming unraveled, he bailed with his loot and moved on to his next scam.
Much embarrassment was caused to Toyota when it was found domestic panels had been mistakenly exported to NZ for local assembly we keep cars forever and these rusted out under a year on local limestone based and cowshit covered roads. I wonder if he actually carried that threat out, and if his daughter ever forgave him if he did. The salesman was vaguely aware that they were built somewhere in Europe,but he was cagey about just where.
The Model T was designed to be affordable and rugged transportation and between 1908 and 1927, more than 15 million were made. It may not seem like much now but you have to remember that this SOHC wonder was sold alongside the already antiquated VW Beetle. Though its price made headlines, the Hyundai lacked staying power and the majority of them have rusted away. Bricklin was the first person to sell Subarus in the USA: this venture ended badly, with the vehicles being declared unsafe and unroadworthy, but the more recent successes of the Subaru brand suggest that he may in fact have been onto something. What is generally overlooked is the fact that, for a short time, the Yugo was a successful car.
In order to boost slightly flagging sales, Bricklin negotiated a deal with the Malaysian manufacturer Proton to add their cars to his portfolio of imports. Yet their demure size was never an issue here – it was their inadequate emissions standards and their poor quality compared to more modern Asian rivals that bothered us Europeans.
We can expect this to be followed by the arrival of new and unfamiliar names from India and China, such as Tata and Geely.
At that time, Bricklin was probably best known for the eponymous car that he launched amidst much fanfare in 1974. The car was a modest success with just under 8000 sold in the first year, but when the 360 was pilloried by Consumer Reports as being “unacceptable” because of its numerous safety issues, the bottom dropped out of the venture and the last few cars sat on dealers lots for years before they were practically given away. It’s hard to pinpoint a weak spot on a Yugo because every system in the car was so badly designed and assembled that the whole car was a no contact accident.
Bricklin is still nominally involved with a venture called Visionary Vehicles and appears on its website today.The end of his Yugo adventure left him short of funds to repay an impressive list of creditors, investors and employees and even the IRS took its pound of flesh later on. But even before then, Subarus had features that endeared them to snow-belt climates, like dual radiators that got the car to warm up quickly. Ironically, if he had stuck it out with Subaru for the long haul, he might have done a whole lot better for himself. The question is this: If corrected to 2014 values, what is the cheapest car of all-time to be sold in North America?
But when adjusted to 2014 inflation, it’s still not as affordable as a Micra is today. Despite being one of the most affordable cars of the time, its price is just not as affordable as the Micra when adjusted to current inflation.
This required backing from Mitsubishi, which provided most of Proton’s components, and at the time that Bricklin invested this remained unsecured.
In an era obsessed with status and money, to be the cheapest car on the market may have been detrimental to the Yugo. If these cars are picked up by the American market, then we can only hope they have more enduring success amongst America’s fickle car consumers than the well-intended but ill-fated Yugo. Quality (or a lack of same) would ensure that the car could not survive in a competitive marketplace. With the pullout of Fiat, Renault and the British makes just a few years before, there was a general sense that room existed in the market for any european nameplate that could build a reasonably priced car that returned good fuel economy and high build quality.
Though it’s rather unlikely that the Micra will become a symbol of the counter-culture.
Barnum and the circus freak show that he brought to America in the twilight of the Reagan years. When the Yugo GV was finally offered for sale in September 1985, (as an ’86 model) , initial orders looked promising.
Bricklin’s old nemesis Consumer Reports weighed in on the cars many shortcomings in its February 1986 issue and refused to recommend it at any price. But after a slow start because of supply problems, the car began selling in volume during year two. He had come to Los Angeles in 1969 from Prague, Czechoslovakia, where he and his father sold used cars. Buyers simply found their cars through word of mouth or ordered new cars directly from Czechoslovakia’s two main auto producers, Skoda and Tatra. To buy a Tatra 613, for instance, car buyers paid full price in advance, then waited six months to a year for delivery.
The buyer had no say over the car’s color or interior, and received no warranty of any kind. The government didn’t make enough new cars, so a black market developed for used ones . But since it was illegal for people to deal in used cars as a business, my father had to be careful.

That’s why he bought the same make and model [the Fiat 600] over and over, then drove the cars for five thousand kilometers before selling them at a profit. The goal was to put 5,000 kilometers on each car, a daunting task for the Kefurts, considering the poor roads and lack of interstates in Czechoslovakia. In 1967, for instance, the Central Intelligence Agency estimated that Czechoslovakia had 46,000 kilometers of roads, of which only 10,000 kilometers were paved. By contrast, the United States had over 3 million kilometers of roads, of which 1 million were paved.
But in 1969 Kefurt decided to leave Czechoslovakia to live with an uncle in the United States. Through various family connections he secured an exit visa and began working at his uncle’s restaurant in West Hollywood, California. Kefurt arrived in the United States in 1969, the same year as Woodstock, the launching of Apollo 10, and the first troop withdrawals from Vietnam. As a student at Hollywood High he found most of his friends owned muscle cars: Pontiac Firebirds and Plymouth Barracudas. At a length of 125 inches, the 600 was nearly three feet shorter than the Volkswagen Beetle. In addition, the Honda 600 had a four-speed manual transmission, a unibody steel construction, and reached a top speed of 80 miles per hour.
He eventually bought other 600s and opened a business fixing the cars for Hollywood-area owners.
Though Honda stopped selling the 600 in 1972, in the early 1980s Kefurt discovered that people were willing to spend thousands of dollars to restore their tiny 600s. The car had a real following, so much so that Kefurt developed a profitable Honda 600 business and was known locally as a small-car guru. In 1982 Kefurt read that socialist Yugoslavia was producing a new two-door hatchback based on the Fiat 127 and with a 903cc, 45-horsepower engine. Therefore, in the summer of 1982 Kefurt hopped into his Honda 600 and drove to the Yugoslav consulate in San Francisco.
At the time, socialist Yugoslavia had consulates in California, Illinois, New York, Ohio, and Pennsylvania, as well as a sprawling embassy complex in Washington, D.C. In San Francisco, Kefurt met with an official commercial attaché who assisted him in contacting the Yugoslav auto manufacturer Crvena Zastava, the maker of the Yugo 45.
Located ninety minutes south of Belgrade in Kragujevac, Serbia, Crvena Zastava had been established in 1953 in a failing armaments plant in the city center.
According to one observer, "By US, Japanese and Western European standards, the Zastava works are a throwback to the Dark Ages—a Diego Rivera mural choreographed live. Occupational Safety and Health Administration] would have a field day here." Zastava also lacked many of the production standards then common in the West, which was the direct result of being the only true car manufacturer in a protected market. But he knew that the Yugo 45 was essentially a Fiat, a car sold in the United States in one form or another since 1957. Even though Fiat had announced that because of poor sales it was leaving the American market, Kefurt believed that he could "keep" Fiat in the United States by importing the Yugo.
Short for General Export, Genex was socialist Yugoslavia’s main trading house, whose job it was to sell consumer goods and other commodities for over 1,200 domestic firms. The company had offices in some seventy countries and in 1986 introduced McDonald’s to Yugoslavia.
They cost a grand total of $7,200 and were shipped to Los Angeles in a forty-foot container that arrived in March 1984. Kefurt knew it was a long shot, that most Americans wanted V-8s, and air-conditioning, and automatic transmissions. Just two months earlier Yugoslavia had hosted the XIV Winter Olympiad in Sarajevo and ABC had given the Games over sixty-three hours of television coverage. Postal Service, even a thermos and bowl set from Campbell’s, the "official soups" of the 1984 Winter Olympics.
The Yugoslavs have done "every thing capitalists say socialists can’t do," exclaimed one. As Kefurt waited for his first shipment of Yugos to arrive in California, Los Angeles readied itself for the 1984 Summer Games. The Games’ chief organizer, Peter Ueberroth, actually "wondered aloud whether Los Angeles would be able to muster the [same sort of] enthusiasm that Sarajevo had" in supporting its Olympics, then praised Yugoslavia for being one of only three communist countries then planning to attend.
If the Soviet Union and its allies failed to make it to Los Angeles, over half of the world’s "world champions" would be absent. It’ll be a "second-rate competition," said one official, "really no competition at all. I mean, what kind of Olympics [is] that?" To ABC, the Games would be a bore, a profit-killing, audience-shrinking bore, which is why, in its contract with Ueberroth, it had stipulated that if the Soviet Union chose to boycott the Olympics, Ueberroth’s organizing committee would refund the network upwards of $90 million in fees. For months, it had been charging companies as much as $260,000 for a thirty-second spot and had already sold over $428 million in airtime. We will not be told what to do by the Soviet Union, or anybody else." Yugoslavia had been independent of Moscow since 1948 when its leader, Josip Broz Tito, announced he was pulling the country out of the Soviet bloc. In the coming decades, Yugoslavia maintained good (if not close) relations with both superpowers, but refused to ally itself with either. By 1984 its foreign trade was almost equally distributed between East and West.31 Yugoslavs drank Coke, wore blue jeans, did business with American firms such as Dow Chemical and Westinghouse, and traded their farm produce for Soviet oil. But the Yugoslavs hoped that their anti-boycott stance, so praised in the press, would be a good form of "company" PR.
They were supposed to go to France, but there were so many problems with them, the French sent them back!" Kefurt and his mechanic spent the next three weeks making the cars presentable. To the red Yugo, Kefurt added a sunroof, mag alloy wheels, and a "super-duper" stereo system, which he claims cost more than the car.
He also took the red Yugo to Olson Laboratories in nearby Fullerton, California, where it underwent a series of emissions tests required by the state’s Air Resources Board (CARB). The car performed poorly on its tests because it continued to use an antiquated carburetor.
The fuel injection designed by Bosch in those days was fantastic, but Zastava wasn’t interested. He printed up Yugo 45 brochures, signs, and promotional literature, then recruited his wife and four teenage models to wear tight Yugo 45 T-shirts and miniskirts and attend the Expo as his "Yugo Girls." The Expo took place in June 1984 in the Los Angeles Convention Center. Kefurt’s display included his red, white, and blue Yugos, a plain, unadorned table, and folding chairs for his Yugo Girls. For some reason the Expo’s organizers had given Kefurt a premium display space next to the main entrance and directly opposite Mercedes-Benz. As a result, thousands of people visited Kefurt’s Yugo exhibit, where his five Yugo Girls were a hit. By show’s end, they had distributed four hundred Yugo T-shirts and twenty thousand Yugo brochures, and had taken forty-two $100 deposits on back-ordered automobiles. When at one point he dented the roof, he jumped down, reached inside, and popped out the dent out with a loud Thwop! Go stand on a Mercedes!" Eventually Kefurt’s Yugo exhibit drew the attention of Paul Dean, a reporter for the Los Angeles Times. His booth is five folding chairs around a rented table and no potted chrysanthemums because they cost extra. The models, female, are Kefurt’s secretary and her Sun Valley friends uniformed in company T-shirts and red miniskirts. Its low price and its Fiat-built engine were in his words "a pretty hefty combination," while the beauty of the Yugo, wrote Dean, was in its "plainness." The Yugo is "simple, utilitarian, [and] honest.
In 1984 the average compact car cost $9,113, with the cheapest car being the Chevrolet Sprint at $5,151. According to the Hertz Corporation, in 1984 the average cost to own and run a compact car in the United States had reached an all-time high, amounting to 45.67 cents per mile. The bottom line, reported Hertz, was that even small cars were expensive and that during the past twelve years motorists had been "driving less, keeping cars longer, and buying smaller vehicles with fewer options." Known as "econo-boxes," these vehicles were almost exclusively Japanese. In 1980, six Japanese companies exported over 1.8 million cars to the United States, a staggering 27 percent of the American market. On average, Japanese cars were cheaper, better built, and more fuel-efficient than their U.S. In 1980, for example, only one American-designed car, the Chevrolet Chevette, had a fuel efficiency rating of more than twenty-five miles per gallon. By contrast, eleven Japanese cars did, with eight Japanese cars averaging more than thirty miles per gallon. In addition, nearly 50 percent of Detroit engineers queried in 1979 believed that Japanese cars were the highest-quality cars sold in the United States.
In both instances, the Organization of Petroleum Exporting Countries increased the price of crude oil, causing U.S. In 1980, a record 2.3 million Americans purchased some $13 billion in foreign-made automobiles. That same year, import sales jumped 21 percent, while sales of domestic cars plummeted 11 percent, to their lowest level since 1961. Permission to reproduce the material in any manner or medium must be secured from the Publisher.

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