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In this paper, we show how Model Driven System Engineering (MDSE) can be applied in the development of a vehicle system. The drivers for the research have been to increase efficiency, flexibility and reconfigurability of UK vehicle system engineering, for enhanced competitiveness and innovation in face of increasing global competitions. Key contributions of the research include (i) establishment of baseline Model Driven Architecture (MDA) approach at the platform independent level; (ii) identification of suitable methodology and toolset (based on Rhapsody / Simulink combination) to permit MDA system designs and hardware-in-the loop (HIL) simulation (based on xPC Target by Mathworks) for system verification; (iii) design and development of a model transformer for seamless transformation of the Rhapsody model to a Simulink model. The end outcome is a streamlined, integrated development platform to facilitate integration of various subsystems and verification of overall system performance to meet the desired system requirements. A case study based on a vehicle system (in this case a train system) had been implemented to verify the effectiveness and capability of the development platform by designing and developing an engine controller and an ABS controller for the train system. The research outcomes shown promising results, which are anticipated to benefit the wider transport sectors, as well as other sectors such as manufacturing and automation.