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How to Use Automotive Keys Properly Automotive keys come in various styles. Some keys have transponder chips embedded in their heads. Others are flat and work mechanically using grooves on the tops and bottoms. The first car key technology was easy to duplicate, but later, manufacturers introduced an electronic chip that contained the unique "password" for your car. This adds an extra layer of protection against theft. Transponder key A transponder, also known as a chip key, is a special ke