By Monica Houston-Waesch

FRANKFURT--Volkswagen AG (VOW.XE) said on Friday it expects to return to full production swiftly after reaching an agreement with suppliers in a dispute that caused reduced working hours for many German employees.

Volkswagen said it wouldn't seek government subsidies for reduced hours at five plants--in Wolfsburg, Zwickau, Kassel, Salzgitter and Braunschweig, but is seeking government assistance for its Emden plant.

The government partially subsidizes reduced working hours to avoid layoffs, when companies apply for assistance.

Earlier this week, Volkswagen reached a deal with suppliers that had stopped delivering parts in a conflict that disrupted production.

Write to Monica Houston-Waesch at nikki.houston@wsj.com

(END) Dow Jones Newswires

August 26, 2016 07:26 ET (11:26 GMT)