History of Kraftvéla ehf. dates back to 1989, P.Samúelsson hf. took over on behalf of Komatsu machinery and began sales and marketing in collaboration with V.Æ.S. mechanical workshop hf., which was then owned by Ævar Thorsteinsson.

VAS.s mechanical workshop hf. had a service contract with P. Samuelsson and saw V.Æ.S. for all services regarding repairs and spare parts until 1992, when P.Samúelsson hf. to take over the repair and spare parts service for Komatsu and start a new company around the operation, thereby Kraftvélar ehf.

Engines began operations on June 1, 1992 with two brands, Komatsu engines and Toyota forklifts. P.Samúelsson hf. had been authorized by Toyota Medicines for the Establishment of Power Plant.
The company started operations in rental housing at Funahöfði 6, in Reykjavik with 7 employees. There were three repairmen, a salesman, a spare part worker, a cashier and a manager.
Of this group, four still work for the company, which are Olga Kristjánsdóttir, Þórður Kristinsson, Gunnar Hrafn Jónsson and Ævar Þorsteinsson.

The company expanded rapidly and soon all facilities at Funahöfði became too small for its operations and therefore the transfer was started.
It was decided to build new headquarters for Kraftvölar at Dalvegur 6-8 in Kópavogur and moved the company to the new building in the spring of 1998, which led to a major transition in the company's operations. The premises expanded by almost 1,500 square meters, with a large outdoor area and an increase in the number of employees by almost 20 new full-time equivalent jobs. The number of employees was at most 70 people in this country in 2007, but today 55 employees are employed by Power Engines.

In 2000, a decision was made to increase the service, and the Leasing Agency was established. The company specializes in leasing of machinery, cranes, trucks, commercial vehicles and agricultural equipment. And that aspect of the business has been growing year by year.

In 2010, the company expanded its capabilities and added more leading brands when Kraftvélar began operations in the agricultural and commercial vehicles market, with New Holland and CaseIH tractors together with Iveco commercial vehicles.
Finally, the product range was expanded in 2016 when Power Plants took over the mandate for Grove car cranes and Potain construction cranes.

Since the establishment of the company, the main focus has been on good and personalized customer service. Good service ensures future growth and stability of the company.
Employee turnover has been low at the company over the years and very good morale. Power engines were chosen as a model company for 2010.

The company is run by the fathers Ævari B. Thorsteinsson and Viktori Karli Ævarsson.