The campaign had been intended to comprise three TV and two press ads. They use the strapline 'It's anything but cute' and are designed to be a humorous take on the car's 'bad' image.
DaimlerChrysler's marketing director, Stephen Gray, said the offending ad, which features a dog sticking its backside out of a car window, has been banned because the animal is not wearing a safety restraint.
This execution will now run digitally.
DaimlerChrysler will run the campaign in two bursts. The first stage will launch this week, with the second in late August and early September.