Your easiest option is to get a new key. How? Head on over to the dealership. They will have one ordered for you.
The E36 has a chip in it and without the code in the chip matching the code in the ignition, the car wont start. Removing this entire system, or modifying it to fit an ignition switch would be difficult, and quite costly if paying someone to do it for you. The cheapest option is to just get a new key.
the early E36 did not have a chip in the key. mine dose not have a chip in key.
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