Hi Everyone!
My Step Daughter has a 2001 Cherokee Sport, 4.0, 2wd, and we think it was stolen a couple of years back....
We say "we think", because she called us late one night to say it was gone from the parking lot where she left it...
It was found in another parking lot in the same area 2 days later... with a parking ticket for an overstay... we assumed at the time she just forgot where she parked it, but she says stuff was missing, and her gas tank was empty!

Anyways, since that day, the drivers window has clicked, so we have to assume it was forced, but today I found another issue.

The Ignition key works fine, but she told me that it can be removed while the car is running....
Sure enough, I tested and it can be removed in any position! Have to assume the lock was drilled or forced somehow.
A new lock assembly is $50ish , but I think this model came with a transponder key...
Can anyone advise on how to proceed with replacing/repairing the lock on this model with a transponder key?

Anyone?
I need to fix this, but dont know how to deal with the "Transponder Key".

I think simply changing the lock cylinder will solve the key retraction problem.

Years ago I had my 98 XJ in storage almost two years. When I drove it the first
time afterwards, and turned off the ignition, I forgot about pushing the little button
underneath to release the key. I yanked the key out in frustration and after that, I
could remove the key at any time. I often found that convenient - I could unlock
the trunk with the engine running (I have all manual locks).

When I changed the lock cylinder years later, the key would not come out unless I
pushed the button. Back to normal.

The lock cylinder is the same p/n, whether the Jeep has keyless entry or not,
immobilizer or not.

My question is about a 2001, with the built in Antitheft system that will not allow the engine to run unless the transponder key is inserted.
There is a yellow "Key" warning light that flashes when you start the engine, and then goes out. If the transponder key is not present in the lock, the engine stops.
We have one of those "Valet" Keys that is in a credit card, that allows the door to be unlocked, but it will NOT allow the engine to run.
The 2001 does not have the button key removal, so I doubt the '98 it has the transponder keys
Also, of course, changing the lock will cure the key extraction issue, but if the key does not contain the chip, the engine will not run.
I can get a replacement lock cylinder at RockAuto for $55 ish, but it states in needs the transponder key!

Is there a work around, or am I missing something?

I have not done this on the Jeep, so I'm assuming it is the same as other manufacturers. But if you change the lock cylinder and key you will need to have the system reprogrammed. Auto lock smiths can do it, using the programmer that plugs into the OBD II port.

Mind you, it is expensive. The last time I had this done I think it was almost $100 for the reprogram of the keys/vehicle.

I would be inclined to leave well enough alone, unless you are having an issue starting the Jeep due to the bad cylinder.

Thanks, for the input.
I just dont think its safe for her car to have a key that can be taken out leaving the engine running!

I can understand your concern. Hopefully my memory is off, and it's not as expensive as I am remembering.

Good luck.

If you have the transponder key and it starts the engine, you do not need to
go to a locksmith. The ignition cylinder is just a mechanical device, not electronic.
You only need to arrange the tumblers in the new cylinder to fit the key you have.

Your only concern, as I see it, is that someone might remove the key from the
ignition and make the engine stop running.

The first thing you need to do, I believe, is fix the key extraction problem. The
ignition key cylinder for the 98 and for the 2001 (all models) is Mopar 5003-843.
The lock cylinder I installed on my 98 came from a locksmith friend and is a
Strattec 703719. Google it and you'll find it online for $25 or so.

Here is a video on how to set the tumblers for the key you have.

There are other videos available for removing and installing the lock
cylinder in the steering column if you need those.

AWESOME!
Thats exactly what I did and it works!