My experience is mostly with vintage vehicles, so I'm not sure if the process has evolved to mostly digital/rapid prototyping for ME stuff. They use a combination of things in the process, which I believe is outlined in an article on JoeIntel. Most of the time they built styrene models, built in-house or in model shops (used more frequently after Hasbro decided they wanted their designers to spend more time on design). They may also have originated as wood patterns before making the progression to styrene. Most of what you will see in collections are the resin hardcopies casted from the original styrene or wood models. In some cases where they intended to integrate existing parts and tooling, you would see kitbashing in the models.
I'm sure someone else can chime in about the current process.
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