The paper presents integrative model-based approach in application of virtual engineering technologies in rapid product and process design and manufacturing. This has resulted in integration of so called CA- technologies and Virtual Reality in product design and FE numerical simulations and optimization of production processes, as digital prototyping of product and processes, from one side, and rapid prototyping techniques as physical prototyping, on the other side. Reverse engineering and coordinate metrology have been also applied in re-engineering of sheet metal forming process of existing product, with aim at generation of initial digital information about product and final quality control on multi-sensor coordinate measurement machine.