Not likely to work. The metal around the trunk will block the Bluetooth signal and you're beholden to an iPhone users to walk within range of the tag to "hear it" and report the GPS lat/lon of the iPhone that hears it.
A tag in a purse or jacket would be more effective.
I think it does work. There is no metal barrier between the trunk and the back seat. It might as well be in the passenger compartment.
We all know that cell phones and bluetooth work from inside the passenger compartment to outside the car.