[10][11][12][13][14] The cars were driven by three-time World Drivers' Champion Lewis Hamilton, and Nico Rosberg, both of whom remained with the team for a fourth and a seventh season, respectively.

"S-duct" remains evolved by Mercedes for improving airflow efficiency from the front of the car to the back of the chassis without major disruption.

[28] A bowl-shaped rear wing was also introduced during the 2016 Canadian Grand Prix, to allow top speeds in excess of 350 kilometres per hour (220 mph) by reducing drag, producing higher downforce.

[clarification needed][29] To enhance the control of ride height and roll, Mercedes tried an innovative design during Singapore Grand Prix by having hydraulic third suspension element housed transversely in the upper chassis bulkhead.

[30] Revised brakes discs with concave surface was seen developed along the season, by dissipating heat efficiently and keeping tyre temperatures consistent.

[31] The Mercedes F1 W07 Hybrid was unofficially launched at the Silverstone Circuit with Rosberg and Hamilton completing an inaugural shakedown during a promotional event on 19 February 2016.

[33][34] The car was also driven by 2015 GP3 Series champion Esteban Ocon and Manor Racing's regular driver Pascal Wehrlein during in-season testing.

At the halfway point of the season, Mercedes had secured all but one win – the Spanish Grand Prix, won by Red Bull's Max Verstappen, where the two Mercedes drivers collided on the opening lap, immediately sending both men into retirement[36] – and one pole – the Monaco Grand Prix, where Red Bull's Daniel Ricciardo took pole position due to technical gremlins affecting both drivers during Q3.

[61][62] At the ninth round of the season – Austrian Grand Prix, Hamilton took his 10th career hat-trick as the Mercedes pair collided during the last lap, with Rosberg limping home for fourth with a seriously damaged car.

[63] Following the collision, Mercedes introduced a new driver management policy – "Rules of Engagement", dictating the terms by which Hamilton and Rosberg could race one another and promising penalties in the event of on-track altercations.

[64][65] Hamilton won his third consecutive British Grand Prix from pole position, a record at the Silverstone Circuit, while Rosberg holding second, suffered a critical gearbox problem during mid-race.

Mercedes instructed him to reset the gearbox and to avoid using seventh gear or else risk a catastrophic failure, which prompted an investigation by the stewards for providing him with assistance.

Rosberg was ultimately penalised for the radio call, having ten seconds added to his race time, which demoted him to third behind Max Verstappen.

[66][67] Hamilton took over the lead in the Drivers' Championship after the Hungarian Grand Prix as he led Rosberg to complete a 1–2 finish, thus in succession setting a new record for the most wins in Hungary, surpassing Michael Schumacher.

At the Singapore Grand Prix, Rosberg took back the Drivers' Championship lead over Hamilton when he won his third consecutive race and eighth overall after fending off a late charge by Ricciardo in the closing laps.

Rosberg dropped to 17th due to a first lap collision with Vettel but recovered to finish in third which extended his lead in the championship to 23 points over Hamilton with five races remaining.

[78] Rosberg initially lost out to Daniel Ricciardo at the start but he was able to retake the second position due to a "free" pitstop under a Virtual Safety Car (VSC) on lap 31, which was caused by the retirement of Max Verstappen.

[79] At the Mexican Grand Prix, Hamilton took pole position while Rosberg secured the twelfth front row lockout for the team by beating Verstappen and Ricciardo on his final run.

Hamilton missed the braking point while a diving Verstappen made heavy wheel-to-wheel contact with Rosberg, causing both Mercedes drivers to go on to the grass.

[82][83] Hamilton took his maiden victory at the Autódromo José Carlos Pace after starting on pole position at the penultimate race – Brazilian Grand Prix, while Rosberg survived a near-spin due to wet weather conditions, gave Mercedes their seventh 1-2 finish of the season.

[86][87] At the final race of the 2016 season, the title rivals took their 14th front-row lockout with Hamilton having out qualified championship leader Rosberg by one-third of a second.

Hamilton moved clear from the field while Rosberg had a lengthy pit stop for preventing an unsafe release, thus critically losing a position to Verstappen.