Colin Chapman had started building Ford-engined, Austin 7-based specials shortly after the end of World War II, and had quickly graduated to his own sports car designs with the Lotus 6 of 1952.

Initially the cars were fitted with the 2-litre powerplant, but as Climax gradually stretched the FPF's capacity the Lotus 16 appeared with a 2.2, then finally a 2.5-litre, full Formula One engine specification.

In its earliest incarnations this transaxle — designed by Richard Ansdale and Harry Mundy incorporating a ZF limited slip differential — proved troublesome and gained itself the derogatorily punning nickname "queerbox".

This was one of the first rear independent suspension designs to be incorporated into a Formula One car, and offered much better traction, handling and adjustability than the previously common de Dion tube systems.

As with many of Lotus's competition cars, the aluminium used to construct the bodywork was extremely thin and offered little in the way of support for the underlying chassis members.

The car was extremely low and compact, with the bonnet barely reaching the same height as the tops of the front wheels, despite the smaller diameters used from the 1959 season onward.

Although the 16 was very aerodynamically efficient, thanks to Costin's bodywork, the high speed Reims-Gueux circuit did not favour the 16's rather under-powered 2-litre engine; Hill's car overheated on lap 19.

In the opening round of the 1960 Formula One season the works team fielded two 16s for Alan Stacey and local driver Alberto Rodriguez Larreta, while team-leader Ireland was equipped with the new Lotus 18.

However, with sponsorship from Robert Bodle Ltd., David Piper entered a lone 16 for the 1960 French and British Grands Prix, but again the car failed to trouble the Championship scorers.