An industrial tribunal is due to give a ruling this month on an alleged race row case involving a Pendragon dealership.
Seven sales executives resigned at Evans Halshaw Citroen in Bradford in March when, they claim, a manager referred to one of them as a "black and white minstrel".
Leeds tribunal heard claims that the manager, Gary Armstrong, had told another manager, Carl Messen, that he "did not like black people".
Louise Watson, the Pendragon HR manager who carried out an internal investigation which gave Armstrong a final written warning despite regarding the comments as gross misconduct, told the tribunal Armstrong had admitted making the "totally unacceptable" comment about black and white minstrels.
However, Armstrong had denied saying that he didn't like black people.