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Richie does an interview for WZAZ TV and gives a recap of what happened earlier. Richie talks to Alfred on the telephone and asks him to send Fonzie over to the garage. The guys try to hide the damage Count Mallachi (an "M" is painted in red on the driver's-side door) did to the car by putting everything under the hood and standing in front of the "M." Fonzie lifts up the hood and sees the damage to the engine. Fonzie tells Ralph and Potsie to get him a gallon of pink paint and tells Tina and Lola (the Pinkettes) to get some parts from Pfister's Emporium. He tells Richie to tell Howard to delay the start of the derby for as long as he can. At the house, Richie tells Howard about the situation. Potsie sings "America the Beautiful" as the derby is set to begin. The Mallachi brothers arrive, and they want the derby to start. Richie announces the entrants and reads the rules of the contest. Pinky arrives in her number-7 car and Fonzie in his number-6 car. Pinky tells Fonzie that she doesn't want to wear a helmet. Marion says "gentlemen, start your junk" instead of "gentlemen, start your engines." The derby begins, and Fonzie and Pinky talk over walkie talkies. Fonzie's car stalls, but he is able to re-start it by hitting the dashboard with his hand just before he is hit by the Mallachi Crunch. Six cars remain. Rocco throws some flour into Lefty Banducci's face, and they take him out with the Mallachi Crunch. Rocco tries the same stunt on Fonzie, but he pulls out a hair dryer and blows the flour back at Rocco. Two teams remain, Fonzie and Pinky and the Mallachi brothers, in the competition. Pinky's car stalls. She goes out on the hood to fix engine, and one of the Mallachis strikes her car. After being knocked to the ground, Pinky is hurt. She gives Fonzie her pink scarf before being taken to the hospital for x-rays. Fonzie, now, faces the daunting task of going against the Mallachi brothers by himself.