In the garage we saw spare parts for KITT.
From the conversation between Michael and Mike at the funeral we can assyme MKsnr and Charles have contact.
in TOS they were always helping the regular man. In the new show, they sadly do not care about that ( so far ).
Can it be possible that kitt and Michael are STILL out there making a difference to people? Still doing the same thing they have done for over 25 years? They are now being supported by Charles who took over from Devon.
There has been no evidence to suggest that KI3T was unaware of KITT. I'm assuming they knew each other.
Alex Torres is aware of this. He has threatened to expose Charles, Michaelsnr and KITTsnr to the world unless he reactivated the foundation, works with the government and moves to the SCC. Alex would also be the man who sent the Bad Guys after KI3T in the movie. They wernt mercenaries, they were Government black ops agents.
Alex has now killed Mikes mother and has threatened the safety of his father and is controlling his friend Charles with blackmail.
This is why Charles told Alex Mike would ( kill/hurt...forgot the words ) him if he ever found out.
Alex is allowing Charles, Miicael and KITT senior to continue to do what they do on the provisio they dont interfer with the Government/FLAG project. This is where Charles has been when he isnt on screen for a few eps

Bits and pieces of this will be discovered over the next few episodes and will culminate in and end of season finale that will see:
*Michael and KITT return
*KITT sacrificing his life somehow to save KI3T
*KI3T declaring that KITT was like his father, and like any son..he wants to be like him and carry on his legacy.
*Alex Toress is killed by Michael Jnr
*The FBI girl just dissapears..kame runs off with the Asian Girl

*Michael Snr joins the show full time and works along side Charles in a support role
*Billy lives on...into a role similar to that of RC.
*There has been a lot of money spent on the SCC set, they wont scrap it. So it stays, but we get our semi back!
*The government no longer has control over flag.
So in season 2 we have
KI3T has grown up a little and shows traits of his predecessor..but still retains his own identity
the character list now is
Michael Knight Jnr as The Driver
Michael Knight Snr and Charles Gramain bascially doing The Devon Thing
Sarah Gramain as The Tech
Billy doing billy stuff.
Stories will be a mixture of contract work to the Government and Old School TOS type stories.