Driven by the fast increase of software in vehicles, R&D at Volvo Car Group has invested in model-driven engineering and physical modeling during the last decade. Volvo is developing ECU software using Simulink^® models for AUTOSAR software components with automated code generation, agile working methods, and fast, automated integration. Additionally, effort is spent in developing plant models (usually physical models), to be used both by the developers and in HIL rigs. The current challenges include efficient unit test environments for developers, fast and automated feedback from system or subsystem integration in model-based or in HIL environment, and managing the diverging ecosystem of plant models to create executable models of the complete vehicle. This session presents Volvo’s state-of-the-art methods in agile model driven engineering with special focus on the usage of plant models and model-based verification.