. >> reporter: a real estate developer who has owned and driven race cars, oliver kuttner and his team didn't initially set out to change the cars we drive. they just wanted to win $5 million. >> dangling the big carrot is what did it. it was the money. once we started digging we learned a lot and it is not the motivating force anymore. >> reporter: the goal for kuttner's team: to win the progressive automotive "x" prize with the main focus to design and build a car that seats four passengers, gets the equivalent of 100 miles per gallon on average in all driving conditions, and can travel at least 200 miles without refueling. it is the latest in a series of "x prizes" that aim to spur innovation by offering a lot of cash. the first "x prize" was for a viable vehicle for commercial space flight. currently, the national fuel average for new u.s. cars is 32 miles per gallon. by 2016, government rules will require 37.8 miles per gallon. >> initially, we were convinced like the rest of america that it had to be an electric or hybrid solution. we think the real deficiency must be from the ef