Does this make it a false arrest?
Not remotely.
At what point are you a "hostage"?
When they actually take you hostage. When they constrain you by force or the threat of force to remain in captivity.
Would you be able to argue they stole your vehicle?
If you did, you would be unsuccessful since what they are doing is not remotely similar to theft.
Would you drive an hour to the city & abandon your car/truck?
How would you drive anywhere without a vehicle? Why wouldn't you just call the police?
Cities have one way streets. ... You will be stuck on a one way street & the police will do nothing. City police are a sad joke.
1. Now we're inside the city instead of an hour away from it?
2. How does being on a one way street make someone "stuck"?
3. Since you're making up the scenario, why not make up a scenario where the city cops are great? Or maybe call the sheriff or constable or state troopers instead of the city cops.
Sometimes crooks set up a false contractor meetings so they can rob your vehicle.
If someone tries to rob you, you have some options that are not legally available to you when someone is merely blocking your path.
IF you are really in a situation where a person absolutely will not allow you to access your vehicle
AND law enforcement will not help or is not available, you
MIGHT be able to legally use force (NOT deadly force) or threaten force to recover access to your property. That would depend on the laws in your area. If you get it wrong, you've probably committed a felony. If they don't respond to the threat of force or are able to repel your use of force without putting you in fear of your life then you have exhausted your legal options.
IF it's legal to use force to recover access to your vehicle
AND when you do so, the person responds in such a way that you reasonably believe that your life is in danger
AND you have no duty to retreat laws in your area, then you might be able to use the normal self-defense laws as justification if you were
FORCED to respond with deadly force to try save your life.
If you take that approach and are forced to use deadly force to survive, I doubt there would be a day for the rest of your life that you wouldn't wish you had just walked away and/or waited for law enforcement.