Volkswagen AG (VOW) and its Chinese partners face hundreds of millions of euros in costs because of problems with their direct shift gearbox system, Handelsblatt reported, citing people close to the company it didn’t identify.

The costs of at least 400 million euros ($496 million) are related to Volkswagen’s warranty extension plan for cars built in China using the so-called DSG system, the newspaper said.

Stefan Nicola in Berlin at +49-30-70010-6246 or snicola2@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net