This movie is the 4th movie in the "Dudu" series, a yellow beetle doing a rally over the Alps. It draws from Herbie the white beetle, but where Herbie had a soul, this one is controlled by a computer (lot's of blinking lights, clicking sounds, and a tape recorder.
The film itself is rather mediocre, the plot is shallow and pretty much predictable. There are a few moments where you have to smile because it's just so incredibly stupid. I remember seeing this thing when I was about 6 or 7 and I loved it back then. So seeing this movie does require the right kind of infantile attitude :).
Many characters in the movie itself are dubbed in Swiss German, as the rally happens in Switzerland. This invites a lot of smiles for Germans, it just sounds cute, in my opinion.