Lumia 820 car Bluetooth

My new Nokia Lumia 820 pairs automatically when I turn on the ignition, however when I try to make a call (via the car) , the phone dials, but I can't hear anything through the speakers. 
I have to put the phone up to my ear to hear/speak.
The dash shows the call duration and number, as if it was on a call as normal.
When I hang up, the phone shows Bluetooth as being disconnected, but the dash shows the call as still being connected. I hang up using the button on the steering wheel and it clears.
I have to then manually pair both the phone and the car to get it to work.
The car is a 2005 BMW e90 with IDrive.
My previous phone was a LG Optimus 7 with WP7.5 and 7.8, and there were never any issues, it would pair automatically and work perfectly every time.
Is this a WP8 issue or a Nokia issue? Is there any resolution for this?

No hardware update is required. All it needs is the latest software. But like I said, BMW Irelands policy is they will not install the update unless it is necessary and unfortunately pairing a phone which is not on their approved list does not qualify. The only approved Nokia on their list for your car is probably the 6230i. I went in to them and all they did was to bring out a 6230 and pair it and pronounced it working. When I produced my phone, they said it wasn't supported. Problem solved when I started having issues with the HUD and they had to update software for that. All my phones started working after update installed. If you are unable to convince them then €1200 is not worth it and you should just return the phone.  Just to let you know, I have not had problems pairing my 920 and 820 with BMW's. Must be over 10 now at this stage.  

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