Earlier quoted context omitted.
How would you describe a challenge based authentication system that uses 128-bit AES? I find the reporter's description reasonable.
Your comment piqued my interest, as I wasn't sure if car manufacturers were really using 128-bit AES or not. That led me to this page: http://ir.atmel.com/releasedetail.cfm?ReleaseID=665225 Where Atmel announced a new transponder chip & microcontroller, which do, indeed, use 128-bit AES. This is from 2012 though, so I'm not sure how widely adopted this particular chip is, or if other, older chips are in widespread us…
I agree with you that this crypto system failure, not an algorithm exploit.