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Keyless Entry Systems For Your Truck In the 80's, car theft using hot-wiring technology was becoming increasingly common. To combat this, General Motors introduced transponder keys or "chip keys". These new car keys contain an electronic chip inside the head that transmits a unique number to your vehicle. If the code matches, your car's engine will start. Transponder Keys A transponder key has a microchip that transmits a signal when the key is inserted into the ignition. The computer on board of the vehicle checks the code, and