The way Volkswagen is handling the issue of a parody commercial that showed a terrorist blowing himself up inside a small but tough Polo is not the way to go. The world is changing and this is not what advertisers should do in order to take advantage of it. You might want to follow Russel's advice "to ask the admen to withdraw it and bung them a few thousand dollars to remake something you do like - the PR would have gained them much more than the money spent combined with their legal costs."
"Advertisers want to control the conversation; that is human nature. Whether you're selling a $5 billion brand or a corner taco stand, you'd rather have folk talking about what you want, not what they want. My advice has been the same for a while: "Control the conversation by improving the conversation."