BMW AG will raise its earnings forecast for the year because it expects an antitrust fine from the European Union to be much smaller than anticipated two years ago.

The automaker will get a roughly 1 billion-euro ($1.2 billion) boost to earnings this quarter from revaluing a provision for an EU fine over allegations that it colluded with its German peers to delay rolling out cleaner cars.

BMW expects the EU “will significantly reduce its allegations” against the company, according to a statement. The lesser-than-anticipated fine will allow the company to raise its margin forecast for auto earnings before interest and taxes by about 1 percentage point.

The EU accused BMW, Volkswagen Group and Daimler of conspiring on emission-reduction systems for diesel cars between 2006 and 2014. Their coordination allegedly made technology aimed at reducing nitrogen-oxide emissions less effective.

Daimler was early to cooperate with the EU’s investigation, which is expected to spare the company from a fine. VW also has cooperated and is less exposed to legal risk.