My 1997 XK8 only came with one key when I purchased it. Naturally I wanted a spare so I called the nearest dealer (3+ hours away) and asked them how much a replacement key would cost. Then I asked them if it was a chipped key that would need to be programed. They said that it was.

I didn't want to drive 3+ hours just to get a spare key programed. I called a local locksmith and they said that they could program the key. I called the dealer back and ordered 1 key and I had it shipped to me. When I received the key I placed it in the ignition and the car fired right up. I let it run for a bit to see if it might shut off or flash some kind of warning. Nothing. So I guess it isn't a chipped key. Good for me, that saved me another $50.

 

In the 1997 wiring diagram, the "Key Transponder Module" is described as 'optional'. I suspect it depends on which market the car was destined for. My car - UK spec - has a transponder in the key so a replacement must be programmed by a dealer with the correct kit.
If you look carefully at the key, you can just see the mark round the recess where the transponder is fitted if applicable.

 

Thanks for your response David. Both of my keys appear to have the "chip" or "transponder" on them. So I suppose all of the keys are chipped and only some have the module? Or maybe none of the US spec cars had the module in 1997?

 

Yes, my 99 has a chip in the key as well. Never noticed it. Thank you for the look see. I have one std key and one valet green key. Not sure if the car came new with more than 2. Thanks again,. Rich

 

No chip on mine, and the parts dept. told me no "97 had a transponder. I wonder if you actually do have a transponder, or just keys with chips.

 

1998 was the first MY (model year) for Jaguar to use the KTM for USA cars!!!!!!!!!!!!!!!!!!!!!!!

bob gauff