The 2014 Cayenne GTS (PRNewsFoto/Porsche Cars North America, Inc.)

(Bloomberg) — 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%, taking the market value lost since the diesel-testing scandal emerged in September to 19.9 billion euros ($21.8 billion).

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