Modern automotive Cyber-Physical Systems (CPS) are increasingly adopting wireless communications for Intra-Vehicular, Vehicle-to-Vehicle (V2V), and Vehicle-to-Infrastructure (V2I) protocols as a promising solution for challenges such as the wire harnessing problem, collision detection, and collision avoidance, traffic control, and environmental hazards. Regrettably, this new trend results in new security challenges that can put the safety and privacy of the automotive CPS and passengers at great risk. In addition, automotive wireless communication security is constrained by strict energy and performance limitations of electronic controller units and sensors. As a result, the key generation and management for secure automotive CPS wireless communication is an open research challenge. This article aims to help solve these security challenges by presenting a practical key generation technique based on the reciprocity and high spatial and temporal variation properties of the automotive wireless communication channel. Accompanying this technique is also a key length optimization algorithm to improve performance (in terms of time and energy) for safety-related applications constrained by small communication windows. To validate the practicality and effectiveness of our approach, we have conducted simulations alongside real-world experiments with vehicles and RC cars. Last, we demonstrate through simulations that we can generate keys with high security strength (keys with 67% min-entropy) with 20× reduction in code size overhead in comparison to the state-of-the-art security techniques.