The One Family That Could Fix VW and Why They Won't

As the diesel emissions scandal roiled Volkswagen AG last fall, Wolfgang Porsche -- the elder statesman of the clan that controls the automaker -- did what he does every autumn. He put on his boots, picked up his rifle, and went deer hunting near the half-timbered Austrian farmhouse where he spent his childhood. As he has almost every year for decades, Porsche trekked through the woods above the blue waters of Lake Zell and dined at Schloss Prielau, a 16-century stone castle he transformed into a luxury hotel.

What Porsche didn't do is take a clear stance as the carmaker his grandfather helped create sank into crisis. In September, Volkswagen acknowledged equipping 11 million diesel vehicles with software designed to trick emissions testers -- revelations that have cost the CEO his job and thrown top management into disarray. The crisis has sent the company's shares down by more than 20 percent, cutting the family's wealth by $2 billion. Last Friday, VW posted the biggest loss in its history and more than doubled the funds set aside to cover the costs of the emissions scandal to 16.2 billion euros ($18.2 billion).