The Dreaded Red Key - Long one ...
The red key is part of the CODE immobiliser system which works on RF(Radio Frequency) technology, similar to that used in Wireless Networks and Bluetooth.
There is a unit in the steering column which looks for valid RF tags before the ECU will allow a key to start the engine. The blue keys contain unique RF tags and the ECU keeps a list of the tags which are allowd to start the engine.
The Red key contains a different chip which is matched to the chip in the ECU. This allows the list of valid keys to be eddited/reset.
So, when you need a new key you go to your Fiat dealer and ask for one. They pull a blank key out of a box and cut the metal to match your red(or blue key) and then use the Red key to reset the list of valid keys adding each of your blue keys to the (new) list.
This is also useful when considering a lost key as the list can be reset and only the keys you have, added back on. Therefore the lost key will still open the doors but will no longer start the engine. Worth considering as the Bravo is one of the easiest cars to break into but one of the hardest to start due to this immobiliser system.
The chip in the red key is produced with the ECU and is matched to the ECU. Fiat keep no records of the chips for security reasons, so if you lose the Red Key you need to replace the Locks plus the Red Key and the ECU as they are a pair. This is why Fiat want £700 upwards for the work.
If you have no red key you can get copies made of a valid blue key at Timpsons and such places. However, this is not a new key as far as the chip code goes but a duplicate so the ECU will see it as the same key.
For day to day running this is fine but there have been reports of incidents where people have returned to a parked Fiat and the immobiliser is locked out. Basically this is when the immobiliser has "crashed" and lost the list of valid keys, this can ONLY be fixed with the red key to create a new list.
If you buy a Fiat with the CODE immobiliser system from a dealer (especially a Fiat dealer) that does not have a red key you can claim that it is faulty goods (so I have heard). If I went to look at a Fiat that should have a Red key and didn't then i'd expect the owner to knock at least £800-1000 off the price, as if the immobiliser crashes that's what it will cost.
This is what I believe the Red Key is about mostly picked up from Fiat, manuals, this board etc, etc,
Barakka
PS- Fiat have now completely dropped this incarnation of the CODE immobiliser system.