Many organizations developing software-intensive systems face challenges with high product complexity and large numbers of variants. In order to effectively maintain and develop these product variants, Product-Line Engineering methods are often considered, while Model-based Systems Engineering practices are commonly utilized to tackle product complexity. In this paper, we report on an industrial case study concerning the ongoing adoption of Product Line Engineering in the Model-based Systems Engineering environment at Volvo Construction Equipment (Volvo CE) in Sweden. In the study, we identify and define a Product Line Engineering process that is aligned with Model-based Systems Engineering activities at the engines control department of Volvo CE. Furthermore, we discuss the implications of the migration from the current development process to a Model-based Product Line Engineering-oriented process. This process, and its implications, are derived by conducting and analyzing interviews with Volvo CE employees, inspecting artifacts and documents, and by means of participant observation. Based on the results of a first system model iteration, we were able to document how Model-based Systems Engineering and variability modeling will affect development activities, work products and stakeholders of the work products.