VW Challenges EPA's Allegations of Porsche Diesel Cheating

  • Regulator says it's looking into more models of diesel cars
  • EPA says VW `knew or should have known' about bypass system

EPA Looking at More VW Diesel Cars

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Volkswagen AG rejected U.S. Environmental Protection Agency allegations that its cheating on diesel-emissions tests included Porsche and other high-end vehicles, setting up a showdown with U.S. regulators as it seeks to repair its battered image.

Software in 3.0-liter diesel engines was not installed “in a forbidden manner,” and Volkswagen is cooperating with the EPA to “clarify” its questions, the Wolfsburg, Germany-based company said in a statement. VW’s shares fell 1.5 percent, taking the market value lost since the diesel-testing scandal emerged in September to 19.9 billion euros ($21.8 billion).