Yeah, I'm not so sure that the toggle switch is original equipment. As for disabling Passlock 1 or 2, it can be done fairly easily. I did this to my 2002 Olds Alero with Passlock 2. Yours is apparently Passlock 2 also according to these photos that follow. You don't have to install a toggle switch, but I would suggest it in case you go to a dealership for service and they need the Passlock re-enabled. I'm sure they will try to tell you that you shouldn't do this. You can just print out this article to educate them on their own system. The BCM is already programmed to go into "fail-enable" mode when the key reference circuit (yellow passlock wire) is broken (cut) while the engine is running. That's the key ---- while the engine is running. The security/anti-theft light will come on and stay on until the circuit is repaired. Your Passlock is now disabled. Just don't repair the circuit (reconnect the wire) unless absolutely necessary. I have read where others just tape up both ends of the cut yellow wire and leave it that way. This probably works fine, but I like the idea of being able to repair the circuit by the flip of a switch. (Just in case.)
This is the MOTOR AGE article describing "fail-enable" mode:
http://www.motorage.com/motorage/dat...09/article.pdf
page 3, If the correct key is in the cylinder and that circuit
fails while the engine is running, this is considered a
malfunction, not a theft attempt. The “Security” light
may turn on to warn of a system malfunction, but even if
it doesn’t, a key recognition circuit failure with the proper
key in the lock will cause the TDM to enter what GM
calls a “fail-enable” mode. Essentially, the theft-deterrent
system goes offline and the engine will start and run
with any key that turns the lock.
Here are 2001 Malibu photos to help you get to the Yellow Passlock 2 wire to cut it while the engine is running. Read the directions below each photo. By the looks of these photos, you should probably go ahead and start your car with your key (no keyring or keys attached) so you won't have to figure out how to start it with the Switch in an unsecure position later in the process.
http://www.directwholesale.net/diagr...1&link=BULLDOG
http://www.directwholesale.net/diagr...2&link=BULLDOG
http://www.directwholesale.net/diagr...5&link=BULLDOG
http://www.directwholesale.net/diagr...6&link=BULLDOG
http://www.directwholesale.net/diagr...8&link=BULLDOG
http://www.directwholesale.net/diagr...9&link=BULLDOG
http://www.directwholesale.net/diagr...2&link=BULLDOG
http://www.directwholesale.net/diagr...5&link=BULLDOG
http://www.directwholesale.net/diagr...7&link=BULLDOG
That yellow wire is the one to clip while the car is running! Incidentally, Malibus, Grand AMs and Aleros are all having the same Passlock problems. Coincidentally, we all have the same part # for the Ignition Lock Cylinder. A Passlock sensor is built into this cylinder. If this sensor goes bad, you have to replace the entire Ignition Lock Cylinder. GM is making a killing and so are the dealerships. I'm not knocking the Certified Technicians, they are just doing what they are trained to do. How can anyone deny that this part is defective? If you are tired of having to wait to start the car that you worked so hard to buy with your own money, you should be able to disable the Passlock if you want to. This is just one way to do it. Here is the Ignition Lock Cylinder part # and I hope this disablement will really help some of you.
1999 - 2004 Alero
1997 - 2003 Malibu
1999 - 2004 Grand Am
The GM part number is 12458191.