The industry hasn't been kind to American automotive suppliers, but now even European companies - especially those specializing in low-volume specialty production - are struggling for survival. Automotive News Europe reports that firms like Karmann, Pininfarina, Bertone and Heuliez are all struggling to maintain their core manufacturing businesses.

Times certainly have changed - Audi's upcoming convertible A3 will be built entirely in-house in Hungary, whereas a decade ago, that program would have been outsourced. Flexible manufacturing within factories allows for a range of products - and variants - to be manufactured on one assembly line with little tooling changes. That significantly reduces the costs of adding an additional or low-volume model, and eliminates the market for outsourced manufacturing.

(Click through for more on the possible demise of the European contract manufacturer)

Years ago, that contract likely would have landed with Karmann, formerly charged with manufacturing convertible tops for the Volkswagen Beetle and countless iterations of the Golf. Now, the company increasingly sees production of drop-top models move away from its auspices and back into the OEM's hands. Although the manufacturer provides roof systems for Pontiac's G6 convertible and others, it merely provided the design and manufacture of the convertible top - not the installation or manufacture of the entire vehicle. The company's cut 20 percent of its workforce in 2006; it expects to cut another 37 percent in 2008.

Design-famous Bertone and Pininfarina haven't been without their troubles, either. Although Bertone seemingly has found salvation with a recent buy-out, Pininfarina continues to lose vast amounts of money. In the first nine months of 2007, the company's net loss was close to €39.1 million - more than twice its loss in the same period in 2006.

So how will these companies survive? Although there may still be the occasional production contract (Aston Martin's Rapide may well be one), companies are shifting from manufacturers to suppliers. Noting it may no longer build vehicles under contract, Karmann may specialize in supplying roof systems or aid manufacturers in body engineering. Not surprisingly, Pininfarina and Bertone may focus instead on serving as design houses.

+Automotive News Europe: Karmann, Bertone, others fight for survival (subscription may be required)