This paper is an experience report about introducing Model-based Systems Engineering (MBSE) at Volvo (Construc-tion Equipment) and describes lessons learned. The recent growth in technologies such as electromobility, automation etc. in heavy construction machinery such as loaders, haulers, excavators etc. leads to increased complexity being addressed within embedded systems and software. Hence there is an increasing need for model-based development methodologies to facilitate flexible and distributed development scenarios, enhance communication among cross-functional teams, more importantly, traceability from requirements to system and software architectures. In this paper, we describe how the MBSE methodology was initially conceived, applied in an ongoing project, the challenges faced, and lessons learned. The paper also points to related works and future directions towards a holistic Model-Driven Development (MDD) framework.