It was okay until the end. It really sort of fell apart in the last 15-20 minutes. Don't read beyond this point if you don't want spoilers. A drugged and brainwashed Bonnie holds Michael up with a gun and K.I.T.T. and Michael go with it. K.I.T.T. could have ejected her. Then a bad guy is burying Michael in a ditch using a crane. At one point Michael is running around yelling "NO!" and the next cut he is lying down and knocked out and just coming to. Then the bad guy stupidly drives after Michael and into the ditch.
Then in the climax, K.I.T.T. has been reprogrammed to obey the head bad guy. Michael basically reprograms K.I.T.T. permanently and fully, by saying "You're my car! I am Michael Knight and you are the Knight Industries 2000." This is after Bonnie had to do more complicated things to reprogram K.I.T.T. as we see her pulling out circuits. Michael also "reprograms" brainwashed Bonnie in the same manner he reprograms K.I.T.T.: "Bonnie, it's me, Michael, you, me, and Devin are a team, we love each other!" and then she's fine. And speaking of Devin, where was he during all of this? He was inducted into Helios too!
At the very end of our climactic scene, the main bad guy also crashes for seemingly no reason and that is how he is caught.