Driving a Volkswagen car with a DSG Oil Service problem can have potentially serious safety and damage risks. DSG stands for Direct Shift Gearbox, which is essentially the transmission in the vehicle. It is filled with a synthetic oil (DSG oil) which lubricates and cools the transmission components. A DSG Oil Service problem means that the oil has degraded over time, which can cause a lack of lubrication and cooling of the transmission components.