User blog comment:Raziel Reaper/GTA V new screenshots, part 2/@comment-5335348-20120821095621/@comment-9444381-20120827004601

Logically, they couldn't make every car's license plate different. It would take many, many years to design them all. So they just put "Liberty City", or "San Andreas", even though they exceed the 7-character limit currently on license plates.