Volkswagen’s operations at its primary Wolfsburg plant will proceed without interruptions next week despite looming threats of microchip shortages due to ongoing China-Netherlands tensions involving Nexperia, a key industry contractor, according to a source familiar with the situation.

The firm’s plans beyond the next week remain in flux as uncertainties persist, exacerbated by an upcoming public holiday and potential impacts from the international stalemate. Currently, Volkswagen hasn’t initiated any state-backed schemes for reducing work hours, although it is in preliminary discussions with the German labor agency about future possibilities.

A Volkswagen representative declined to comment on the situation, leaving the auto industry on edge as it closely watches the developments between China and the Netherlands that could have far-reaching consequences for global supply chains.