Volkswagen Financial Services closes its in-house daycare after 16 years
Volkswagen Financial Services (VW FS) is shutting down its long-running in-house daycare centre, Freche Daxe, after 16 years of operation. The move follows a sharp drop in demand from employees for corporate childcare places. Starting in August, the city of Braunschweig will step in to manage most of the affected groups.
Since 2008, VW FS had fully funded the daycare, saving Braunschweig an estimated €14.7 million over the years. However, the company recently reported that fewer employees were using the service, prompting the decision to close it.
Under the new arrangement, seven of the ten daycare groups will transfer to municipal control. The city will cover the €1.15 million annual cost of running these groups, though officials stress this is not a subsidy for VW FS. Instead, the company will pay around €475,000 yearly to secure 55 spots exclusively for its employees’ children. The change could also ease financial pressure on the city. By repurposing existing facilities, Braunschweig may avoid expensive construction of a new daycare in the Wenden-West development area. Meanwhile, children from nearby Wenden housing estates could be relocated to the remaining corporate daycare on Käferweg.
The transition will take effect in August, with the city now overseeing most of the former VW FS daycare groups. The company’s annual payment will guarantee continued access for its staff, while Braunschweig avoids building a costly new facility. The shift reflects both declining demand and a more cost-effective approach to childcare provision.
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