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Neither key will turn the ignition to start. Happened when I went to close the windows, I had driven the C5 moments earlier. Tried jiggling/Y\wiggling, remove/install negative battery term and a shot of WD40 on the key.
You may have to remove the entire ignition switch and use a Dremel tool to cut the plastic barrel/cylinder that the lock cylinder fits into and remove the lock cylinder.
Then you will need to repair the defective lock cylinder and install it into a new ignition switch assy.
Before you destroy the switch, see if you can remove the VATS key chip sensor/ reader from the front of the lock cylinder and then see if you can see if any of the pins inside the lock cylinder are damaged.
Try not to damage the sensor. If you do, you will have to order a new lock cylinder and have a locksmith or the dealer re pin the lock cylinder to match your key. Then you just insert the new or repaired lock cylinder into the new switch.
As a last resort, spray in some WD-40 into the lock cylinder and insert the key, lightly TAP IN on the key and then try to rotate it If the lock turns, ASAP get that cylinder out and repair or replace it.
I don't know for sure. With graphite, you have to work it in to the moving parts and with a stuck pin, I don't know if it will do that. WD40 is a very light lubricant. It wont hurt the lock and or the switch (they are separated) and will evaporate over time.