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I have iPhone 5 with iOS 7. I had same problem. Easy fix is to NOT plug it into the USB hard wired cable. Stream spotify over Bluetooth, period. It works flawlessly.
If iTunes does launch over BT just switch on the phone to spotify and launch your song or playlist. You can page up or down through the playlists from the steering wheel controls. Sound quality is good. Turn your phone volume up to full less two or three dashes then control volume from the car after that. The phone volume does affect the BT output gain
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