First there's the car-as-woman / woman-as-car thing. I don't know what's creepier about the analogy, the idea of being sexually attracted to a car, or the portrayal of women as things which can be bought, sold, and steered. Yep, it's the second thing. Much worse.
Then there's the portrayal of the Italian woman as the hot-headed seductress, angry one second, sex-kittenish the next. Seems pretty racist. And sexist. The woman who is upset about a strange man ogling her bosoms who suddenly finds herself aroused by that weaselly little man? Seems kind of like a porno fantasy, the woman who acts offended, but is secretly "turned on" by the unwanted attention? Her lips may say no, but her eyes say yes? It feels like something in that vein.
And then it's also just stupid because the car being represented by the exotic temptress is this:
Has there been a less attractive car?
Touche' Google Image Search!
And the tag line: You'll never forget the first time you see one.
Yeah, you'll always remember that time you said "Hey, look, it's one of those Smart Cars!"