You must have a Dodge, Chrysler or Jeep. My original iPhone worked beautifully with our Dodge, however, it was locking up and ended up needing to be replaced. I drove 450 miles round-trip to replace it on Monday. Tuesday, it would not function using the Bluetooth even though both the car and the phone indicate that the pairing was successful and complete. So, Apple sent me another phone (after I sent the second one back to them, leaving me without a phone for 3 1/2 days). I got the third iPhone this afternoon. It is having the same problem.
If I turn Bluetooth on under the Settings, "Devices" and a rotating starburst appears under Blue tooth. Under that is UConnect Paired. The rotating starburst will not stop. I believe that this is the problem.
I am NOT happy about this considering that holding a cell while driving is dangerous and in many areas illegal. The car kit was expensive. Until Apple's changes, all was fine!
Come on Apple!