On Friday, Volvo Cars announced that it would cut 2,500 jobs and had lost more than SEK 5 billion in the third quarter.
The announcement sent the already depressed share price tumbling another 24 percent.
There is no single concern behind the crash - the problems are everywhere.
In the important North American market, Donald Trump has introduced tariffs, which are particularly problematic for Volvo, which has not invested in local production.
“Imports basically everything”
Volvo imports essentially all of its cars into the US, which means they are subject to the 15 percent tariff.
Furthermore, the Swedish-Chinese automaker's focus on electric cars does not seem to have taken Americans by storm.
The North American market is tough, partly because subsidies for electric cars have been removed. They don't sell that many electric cars in the US, he says.
The carmaker will now focus on increasing its own production in the US to get around the tariffs, but the question is whether it has fallen a step behind its competitors.
German automakers are in a better position in the US, with more local production, says Engellau.
In China, things are just as bleak for all the European car giants. Too many players are fighting for the same customers.
German car brands are losing about 40 percent of their sales in China. It is the largest market and has also historically been the most profitable, he says, adding that Chinese automakers have also gained ground in the European market.
Volvo has had internal problems with production of the EX60 model.
They have had difficulty ramping up production of the new model, which has been a sales success, but now they are unable to get the cars out to customers.
The production disruption cannot be explained by external factors.
I don't think you can blame anyone else for that. You're producing something you haven't produced before, which means you have ramp-up problems.
The timing is unfortunate.
It's incredibly unfortunate that this is happening in combination with these outside factors.
But Engellau doesn't want to condemn Volvo Cars.
In all the darkness that we are experiencing now, I would still say that the future looks quite bright based on the strategy that has been laid out and what we want to do, he says.