Mercedes boss Toto Wolff says the development programme for its 2023 car which aims to overhaul its design is showing "promising signs" at Brackley.
Mercedes has put together a plan of attack to boosts its performance, having realized that the current concept of its car, based on last year's zero sidepod design, will not allow it to compete for wins on merit or to bridge the gap with the dominant Red Bull team.
The team's comprehensive plan will unfold over the coming months and will hopefully produce a competitive racing car by the beginning of the summer.
In the interim, Mercedes is in the mix for good points behind Red Bull, as was the case in Jeddah recently.
"The progress we saw in Saudi Arabia was encouraging," said Wolff in Mercedes' Australian Grand Prix preview.
"We maximised the package we had and scored some solid points. More importantly, we continued to learn and understand more about the W14 and our development direction.
"Everyone back at base has been hard at work to turn these learnings into performance."
Read also:
So far, wind tunnel numbers have been promising, but Wolff insists they remain theoretical until the test of the track.
"The signs we are seeing back at the factory are promising," he added.
"We have got to take it step by step, though, and won't get carried away until we see performance translated into lap time on track.
"The competitive order behind Red Bull is tight, with small margins having a big effect on points scored.
"There remains a significant gap to the front and that is ultimately what we are interested in closing."
Looking ahead at this weekend's round of racing in Melbourne, while Mercedes isn't where it wants to be, Wolff says his team will once again give it "everything we've got".
"Albert Park is a circuit with unique characteristics, which we will have to work hard to adapt to with the W14," he said. "
"As always, we will look to maximise the car we have, and score as many points as our potential currently allows.
"We are not where we want to be - but that won't stop us from racing hard and giving it everything we've got."
Keep up to date with all the F1 news via Facebook and Twitter
