The F1 W07 Hybrid was the successor to the dominant F1 W06 Hybrid. Designed under the direction of Paddy Lowe, Aldo Costa, Geoff Willis, Loïc Serra, Russell Cooley, John Owen, Mike Elliott, and Jarrod Murphy, the car represented “mini revolutions” over its predecessor, focusing on refining an already potent package. The design was driven by the 2016 Formula One regulations and aimed to build upon the success of the Mercedes power unit. The chassis was designated "F1 W07 Hybrid" to signify it as the seventh Formula One car constructed by Mercedes since 2010, while the "hybrid" designation acknowledged the fully integrated hybrid power unit.
The F1 W07 Hybrid utilized the Mercedes-Benz PU106C Hybrid power unit, an upgraded version of the PU106B Hybrid introduced during the 2015 Italian Grand Prix. The power unit was estimated to produce between 950 and 1,000 horsepower, exceeding the output of its competitors from Ferrari, Renault, and Honda. Key developments included improvements to airflow efficiency, with an evolved "S-duct" design. Further in-season development included the introduction of "L-shaped turning vanes" under the chassis and front wing fins to better direct airflow. A bowl-shaped rear wing, similar to a design used in 2015, was implemented to reduce drag and increase downforce, enabling top speeds exceeding 350 kilometres per hour (220 mph). An innovative hydraulic third suspension element was trialed during the Singapore Grand Prix to enhance ride height and roll control, and revised brake discs with a concave surface were developed to improve heat dissipation and tyre temperature consistency.
The F1 W07 Hybrid made its competitive debut at the 2016 Australian Grand Prix, with Hamilton taking pole position and securing a 1-2 finish for Mercedes. Rosberg won the Bahrain Grand Prix, while Hamilton recovered from an early incident to finish third. Rosberg continued his winning streak in China and Russia, with Hamilton facing reliability issues in both races. A controversial collision between Hamilton and Rosberg at the Spanish Grand Prix resulted in a double retirement for the team. Hamilton won in Monaco and Canada, while Rosberg secured a Grand Slam victory (pole position, fastest lap, led every lap, and win) in Russia.
The car achieved ten consecutive wins from the Monaco Grand Prix to the Singapore Grand Prix. At the Mexican Grand Prix, the F1 W07 Hybrid broke the record for most wins in a single season, surpassing the previous record of 16 set in 2014 and 2015. Hamilton secured a record 19th pole position at the Brazilian Grand Prix. Rosberg ultimately clinched the 2016 World Drivers' Championship at the Abu Dhabi Grand Prix, defeating Hamilton by five points after a tense final race where both drivers strategically managed their pace. Throughout the season, the car demonstrated competitiveness across a variety of track layouts.
The performance of the F1 W07 Hybrid did not trigger any specific rule changes during the 2016 season.
The success of the F1 W07 Hybrid, and the preceding W05 and W06, led to continued dominance for Mercedes in Formula One. The design philosophies and power unit advancements pioneered in the W07 influenced subsequent Mercedes cars, contributing to their continued success in the following seasons. The car also prompted rivals to focus heavily on power unit development and aerodynamic efficiency to close the performance gap. Furthermore, the road car project, Mercedes-AMG Project One, directly benefited from technologies developed for the F1 W07 Hybrid.
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