It works by displacing all material in front of the car to the back of the car. That way the car can drive through solid walls, leaving holes. The car can displace people without hurting them, and run through a mountain or into the center of the earth.
A presentation of the vehicle is found here: 
The displacement drive vehicle was put on an auction for all villains and evil masterminds to bid on. Torg and Sasha, working for the Minion Master with assistance from Sam, Bun-bun and Zhoas, stole the vehicle from the auction.
It was, however, driven into the center of the earth by Sams reckless driving. Fortunately, the car run out of gas before it could reach the earth's core and merely landed at The Valley that Time Forgot Lost in the Center of the Earth.