Yes they are put in jail. But who bears the cost of extra policing, court time, jail space? The city does. So the city is seeking reparation from the cost incurred.
If Kia is liable for inducing crime, government should be similarly liable for allowing crime; as preventing it is their main job.
Does that really exceed the cost damage done if they're left to keep on stealing/crashing cars? At some point they'll kill someone, and the 'cash value of a human life' question will come up.