A perforated collapsible spacer controllably takes up space between two bearings on an automotive pinion. The perforated collapsible spacer is formed from a steel sheet having longitudinal edges that are joined together in a form of a tube having longitudinal perforated sections formed in its central portion. As a pinion nut is tightened, an axial clamping force is applied to the collapsible spacer that is located between tail and head bearing cones, where the central portion of the collapsible spacer is caused to buckle, so as to adjust the final space between the bearing cones while a spring force is maintained on the bearings. Yield points of the central portion with the perforated sections that buckle, are controllable depending on the steel sheet material thickness, and the size, shape and quantity of perforations in the steel sheet.