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Keyless Entry Systems For Your Truck In the 1980s, car thefts using hot-wiring became more frequent. To combat this, General Motors introduced transponder keys, also known as "chip keys". These new type of car keys have an electronic chip in the head of the key that transmits the car with a specific code. If the code matches, your engine will begin. Transponder Keys A transponder key features the microchip that transmits an electronic signal when the key is put into the ignition. The computer on board of the car checks the code, and permits the e