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Technical description: Key: Transponder

WARNING: This page is about a different car, the 2001 Saab 9-3. However, it is still accessible from the selected car via links, so may be relevant.
Fig 1: Identifying Key/Transponder
G03509371Courtesy of SAAB-SCANIA OF AMERICA, INC.

The key with integrated remote control has an built-in transponder where the identification code is stored, the code being unique to each transponder. When the key is inserted into the ignition and turned to the ON position, the identification code is transferred to the receiver which is located around the ignition switch. The receiver processes the signal and outputs it to the TWICE control module which in turn confirms the validity of the code.

The transponder identification is used for: