A Transponder is an electronic chip embeded in the plastic key head on most cars manufactured after 1995. Transponders require no batteries as they are powered off radio frequencies from the car ignition. With out the correct transponder programmed into the key the cars immobiliser system will not start.

Why are Transponders used ?

The use of Transponders systems dramatically reduces car theft because the system automatically activates every time the key is removed from the ignition. 

So What is the Problem ?

Cars and Motorcycles equipped with Transponder systems require additional equipment and skill, to cut and program extra keys into the security module. If all keys are lost then this can cost many thousands of dollars at the dealer. This does not just apply to expensive European cars but also most local and Japanese cars as well.