Abstract: A toy vehicle having wheels which may be folded to a horizontal position under the vehicle by squeezing a hand grip. Two elongated axle members are rotatably engaged to the sides of the vehicle. The wheels are rotatably mounted on front and rear axles attached to the elongated axle members. A pivot plate is rotatably mounted to the bottom of the toy vehicle. When the hand grip is squeezed, a link connected to a trigger member causes the plate to rotate. The rotating plate then causes two slotted links to rotate the elongated axle members. As a result, the wheels mounted on the axle members also rotate until they reach a substantially horizontal position under the vehicle. The wheels remain in this folded position until the hand grip is released. When the grip is released, springs return the wheels to a vertical position. The slotted links are designed to allow the wheels at just one side of the toy vehicle to be folded.