Owners of almost every major car models are affected with iOS 8 Bluetooth issues including BMW, Audi, GM(Chevy, GMC, Cadillac, Buick), Mercedes-Benz, VW, Mazda, Lexus, Fiat, Hyundai and more. The changelog of iOS 8.1 update states:
“Fixes an issue that could prevent connections to Bluetooth hands-free devices.” A car infotainment system is a hand-free device, therefore it “could” help.
The update started being pushed out Monday morning via an over-the-air (OTA) update on iPhones or through iTunes.
Update 10/27/2014:Reports from AUTO Connected Car News indicate that only some Bluetooth vehicle connection issues have been helped by iOS 8.1. The update does not help with some Lexus, Honda, Cadillac, Subaru, Honda, Hyundai, Toyota, Mazda, Acura and Audi models. The people who are experiencing problems are taking back their new iPhone 6's.
Tech reporters have suggested to wait before updating because of the various problems with iOS 8.01 and 8.02. Apple announced the update last week when it showed its new Macs and iPads.
Other fixes in the update includes fixes for issue with Wi-Fi, screen rotation and cellular data choices. There are accessibility improvements for keyboards, hearing aids, Bluetooth keyboard and Braille display. THe update add support for Apple Pay. It restores camera roll. The major features offer connectivity to Macs for voice calls, SMS and continuity of functions. 8.1 offers SMS Relay, the ability to see and respond to texts sent to your iOS device on a connected Mac.
iOS 8.1 will also let you turn your iPhone into a Wi-Fi hotspot with Instant Hot Spot a new feature to iPhones that has been available on Android and other smartphone OS' for a while. iOS 8.1, lets users use the iCloud Photo Library (public beta).
The update takes 25-30 minutes to perform. The update is 127MB but requires as much as 4.8GB of storage for an OTA update. The update takes much less space when connected to a computer over iTunes.