Volkswagen is facing production delays at more than half of its German plants as two of its suppliers seek compensation for canceled contracts.

VW’s human resources chief Martin Rosik says the automaker has adopted shortened and flexible working hours. Twenty-seven-thousand employees have been affected.

The automaker has paused production of its Golf and Passat models, as well as assembly of engines, gearboxes and emission-control systems.

Suppliers say they face revenue losses of tens of millions of euros after VW canceled contracts. Now the two sides are trying to resolve the dispute through high-level talks.

Germany’s economy ministry has asked for a quick end to the dispute.