The profession in the Alsace region has been deeplyhurt by increases in cigarette taxes since 2002, which mean that a packet on the French side of the border is 20% more expensive than in neighbouring Germany.
The dealership has since apologised, saying the advert had been totally inappropriate and that it deeply regretted the "hurt it had caused to the family of the victims and society".
But in the United States, the Anti-Defamation League said it was "deeply disappointed and saddened" by the private conversation, warning that it could hurt ties between Israel and two key players in the Middle East peace process.