Volkswagen AG said on Monday roughly 27,700 employees would be affected by reduced working hours resulting from a supplier dispute that has disrupted production at several plants in Germany.

Production halts have hit Volkswagen's main plant in Wolfsburg, Germany, most severely, where 10,000 workers are affected, the car maker said. Plants in Emden, Zwickau, Kassel, Salzgitter and Braunschweig also will work reduced hours in the coming days.

Volkswagen warned that it couldn't foresee further developments, but according to its current planning most stoppages would end as of this weekend. In Kassel and Salzgitter, production measures will end early next week.

Volkswagen, still reeling from an emissions scandal that has cost it billions of dollars, last week said a shortfall in seating and gearbox components meant it had to adjust production for some models, including the Golf and Passat.

The auto maker and two suppliers—Car Trim and ES Automobilguss—resume negotiations Monday to resolve the matter after the suppliers cut delivery. The suppliers denied responsibility for the situation, saying Volkswagen cancelled contracts without explanation or compensation and the decision to halt delivery was taken to protect their own workforces.

Germany's Economics Ministry on Monday urged Volkswagen and the suppliers to resolve the dispute quickly.

"This is about thousands of jobs that could be affected by shorter working hours," a ministry spokesman said. "There's a responsibility to approach these issues as constructively as possible and resolve them as constructively as possible."

Volkswagen employs 276,000 people in Germany, 73,000 of them in Wolfsburg. The company is still sorting out financial and strategic issues caused by a scandal that erupted nearly a year ago when U.S. authorities disclosed Volkswagen rigged vehicles with software that let them perform better in pollution tests than on the road. Volkswagen later said the software was installed in some 11 million vehicles world-wide.

Despite the German output disruptions, the head of Volkswagen's works council, Bernd Osterloh, said he wasn't concerned the current wrangle with suppliers would lead to job cuts.

Hendrik Varnholt and Andrea Thomas contributed to this article.

Write to Sarah Sloat at sarah.sloat@wsj.com

 

(END) Dow Jones Newswires

August 22, 2016 12:15 ET (16:15 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.