NEW YORK (TheStreet) -- Volkswagen (VLKAY) stock closed lower by 2.88% to $27 on Monday afternoon, after the Environmental Protection Agency and the California Air Resources Board issued a new notice of violations of the Clean Air Act to the German carmaker. The violations are for using defeat devices in seven vehicles.

The federal agency claims the company installed defeat devices that allow the 3.0 liter engines to emit nitrogen oxide at up to nine times the EPA standard by turning off emissions controls when the car is not being officially tested.

The vehicles include the diesel models of the 2014 VW Touareg, the 2015 Porsche Cayenne, and the 2016 Audi A6 Quattro, A7 Quattro, A8, A8L and Q5.

"VW has once again failed its obligation to comply with the law that protects clean air for all Americans," Cynthia Giles, assistant administrator for enforcement and compliance assurance at the EPA, said in a statement.

The new allegations stem from the investigation following the violation notice in September regarding 2.0 liter engines in vehicles with defeat devices.

"Volkswagen AG wishes to emphasize that no software has been installed in the 3-liter V6 diesel power units to alter emissions characteristics in a forbidden manner," Volkswagen said in a statement, adding that it will cooperate with the EPA.

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