Efforts have been made to clarify how computer tools and multibody dynamic analysis methods are used in product development in industry today. Insight into the knowledge domains of product development and multibody dynamics is given together with an introduction to the areas of distributed simulation, modularisation techniques and non-linear analysis. The mentioned domains have traditionally been separated but the introduction of concurrent engineering and faster computers puts new demands on the need for integration of computer support and analysis in the development process. The performed work is to be seen as cross-functional work in order to bring different domains together for the sake of a better total product development. The application areas used in the work are all within vehicle system dynamics. Clarification of the multibody dynamic simulation methodology has been made in the performed work. A proposal for performing the multibody dynamics methodology in a distributed and modular way in the product development process is given together with a prototype implementation. The prototype system facilitates the idea of distributing analysis possibilities from simulation experts to engineers, hereby increasing the simulation usage in product development. The purpose is to arrive at a simulation driven design rather than a simulation verified design