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your problem is one that i have encountered numerous times, you need to replace key cylinder with key, cylinder has a microchip in it with two very thin wires coming out of it (something like 30 gauge or 35,very thin) wires usually break because of constant movement, causing open circuit and computer system not acknowledging correct key used due to vehicle pass-lock II ANTI-THEFT SYSTEM

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Q: 1996 grand am 2.4 manual transmission anti theft light wont go out and car turns over but wont start?
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