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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 or "chip keys". The new car keys feature an electronic chip in the head of the key, which transmits an electronic code to your car. If the code matches, your car's engine will start. Transponder Keys A transponder key is equipped with a microchip that transmits an electronic signal when the key is inserted into the ignition. The computer on