A significant upswing in thefts of an expensive car part has left Hampton Roads business owners irate and frustrated with the loss of tens of thousands of dollars worth of goods.

Thefts of catalytic converters are on the rise in both Portsmouth and Norfolk, according to used car business owners in both cities. The part, under the vehicle as part of the exhaust system, filters harmful pollutants.

“This is not a small amount of money to swallow,” said Matt Hannon, sales manager with Auto City Portsmouth and Chesapeake. “It’s tough as an independent business.”

Auto City has been hit three or four times since the beginning of the year, Hannon said. He described the thieves as brazen for entering chained lots with security camera systems. More than 20 converters have been stolen so far — around $30,000 worth, Auto City owner Tim Lester said.

The thefts have halted operational functions at Eggleston Automotive Center in Norfolk. The nonprofit accepts donated vehicles, cleans them up and sells them at auctions to fund programs for people with disabilities. Starting around Memorial Day weekend, thieves have broken in five times, stealing more than 30 converters and five entire vehicles, manager Paul Atkinson Jr. said.

“This has presented unprecedented challenges,” Atkinson said.

Because of the hit to their inventory, Eggleston leaders had to cancel two of three planned auctions in July — a first for the group, Atkinson said. Nonprofit leaders also installed a new security system.

Catalytic converter thefts are nothing new for dealers, Hannon said. From the parts, thieves can sell precious metals such as platinum or palladium to scrap shops or recycling facilities. But the recent spate of thefts is unique and part of a national phenomenon, Atkinson said. The thefts more than quadrupled early during the pandemic, according to the National Insurance Crime Bureau, increasing from 3,389 thefts in 2019 to 14,433 in 2020.

Atkinson suspects that pandemic-related supply chain issues have made the converters a more appealing prospect for thieves. The price of palladium has increased more than 141% during the past five years, from $837 to $2,020 per ounce, according to precious metal seller Monex.

Virginia lawmakers have upped the penalties for converter theft. A 2022 bill signed by Gov. Glenn Youngkin makes stealing or tampering with a converter a Class 6 felony, which is punishable by up to five years in prison.

Both car organizations have filed multiple reports with local police. Hannon said Portsmouth police have yet to follow up on the thefts. Norfolk police found three of the five stolen vehicles, Atkinson said, but they were unusable for the nonprofit. One car had been completely stripped of parts.

Trevor Metcalfe, 757-222-5345, trevor.metcalfe@pilotonline.com