FRANKFURT (Reuters) -Production at Volkswagen's main plant will proceed as planned next work week despite the risk of microchip shortages from a China-Netherlands stand-off over car industry contractor Nexperia, a person familiar with the matter told Reuters on Thursday.

But beyond the next work week, which will be shortened only because of a public holiday, there remains some uncertainty, the source added.

The company has no current plans to launch a state-backed reduced working hours scheme at its main Wolfsburg plant near its headquarters due to the risk of microchip shortages, the person also said.

The company is, however, in precautionary discussions with the German labour agency over drawing on the option later, the source added.

Volkswagen declined to comment.