The vehicle --- named the Transition --- has two seats, four wheels and wings that fold up so it can be driven like a car.

that fold up 是定语从句，修饰wings。在这个定语从句中，还包含着一个目的状语从句so it can be driven like a car。考虑到定语从句较长，可以单独翻译成一句。

意思是：它们折叠起来就可以像轿车一样行驶。