More exposition. Sarah complains about Michael losing the package. Also, a helicopter has shot a missile at them. Michael insists that KITT deploy flares, which, after some complaining, he does. But they're ineffective because KITT has already cooled his temperature to match ambient heat sources (or something. I'm pretty sure all those words were in it, but they may have been in a different order). The missile isn't targeting KITT -- it's targeting Michael! Also, KITT tells us that his sensors indicate something odd about the missile. KITT seems to like starting sentences with "My sensors indicate". I kind of like the effect. My eyes tell me that Michael needs a shave. My eyes also tell me that we're cutting to Knight Industries Research & Development Satellite Surveillance Chamber. Location: CLASSIFIED." And the "CLASSIFIED" is in blinking red so you know they mean it. It looks kind of like that room they keep the Stargate in. They've sure come a long way since they had to keep all their stuff in a truck that Michael had to park in the back of.
Well, wherever they are (is it Vancouver? I bet it's Vancouver) there are about twenty people running around and panicking. A voice (not KITT's) counts down to impact. At 15 seconds, a young lady says "This just got interesting," which seems to imply that it wasn't interesting with 20 seconds until impact. Somebody else is working on a computer with chemical symbols on its screen. The missile hits and we finally achieve the opening credits. Sheesh!
The opening credit music is a lot like the original theme song, which I approve of.
Welcome back! Back at HQ, Bruce Davison (Charles, the creator of the car, and also Sarah's father) is gloating about how KITT diverted power at exactly the right time, which explains why Michael, Sarah, and KITT aren't burned to a crisp. Of course! Power diversion! KITT is still on fire, though, because the missile was full of "an advanced form of napalm". At this point, people start barking orders at the super-intelligent car. Shed it! Scan it! And so on! The Exposition Chip kicks in again and we learn that it's so hot in the car that the odds of Michael and Sarah surviving until the fire burns out are 1 in 997,000. Somebody at HQ blurts out "That is so not good," and I'm not sure he should be channeling Chandler Bing for his crack scientist character.