No it is not an alarm system. It is an electrical immobilizer. What that means is, if someone tries to start the car with a replicated key, the electrical systems of the car will become crippled and it will not go anywhere.
The keys have a chip in it that is read by the computer everytime the key is inserted. If the code on the chip is acknowledged by the computer, it allows the car to start. All electrical systems will become crippled otherwise.
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