Schaeffler has finally won the battle for Continental in an $18 billion deal that would create the world’s third-largest auto supplier.

Schaeffler makes ball bearings, typically used to steer a car. Its mechanical joints can be found in everything from the London Eye ferris wheel to the U.S. space shuttle. Continental makes a variety of components from tyres to brakes.

The grand finale ends a long and bitter battle in which Schaeffler quietly amassed a 36-percent stake in Continental, while Continental attacked Schaeffler as “egotistical, autocratic and irresponsible.”

Despite all that acrimony, Continental has decided to give control of the company to the Bavarian group owned by glamorous billionaire Maria-Elisabeth Schaeffler and her son.

The move by Continental is a sign of the times. And a harbinger of things to come. Rising gas prices, falling home prices and weak credit markets have eaten into car sales all over the world. In the United States — the world’s largest auto market — July auto sales plunged to their lowest in 16 years.

As automakers try to cut costs in every way possible, they are amping up the pressure on suppliers. And as suppliers get squeezed, fewer of them will be able to stand alone. At least half of the major U.S. suppliers have gone through bankruptcy. A few are struggling to exit Chapter 11.

Already squeezed by record commodity prices, the auto supplier industry has been hit hard by the slump in vehicle sales.

Not only are suppliers faced with the need to present automakers with lower bills, but they are also suffering from unexpected production cuts. While several automakers are slashing production of pickups trucks and SUVs, the suppliers were banking on the original (higher) production numbers.

More suppliers may be forced to seek bankruptcy protection or merge to capture cost-savings, analysts predict. As automakers look to streamline every part of their business, they may want a one-stop-shop for supplies instead of dealing with multiple parts vendors, which could also put an emphasis on consolidation.