The box pieces fold into wings, the front end of the cab becomes feet in a fairly interesting way, and at least on mine the head and shoulders section falls out.
With regards to the cleanliness of Final Battle Jazz's car mode: it's quite possible that Pontiac didn't want their vehicle to be depicted in a beat-up state. I know that in a couple of racing video games, certain cars were forbidden from showing visible damage (I reckon that makes the texturers' jobs easier...)
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My head and shoulders falls off easy too...
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