Mercedes boss Ross Brawn insists it is still possible for his team to win the world championship, despite a disappointing start to the season.
German driver Nico Rosberg has finished third on two occasions this year, while team-mate and countryman Michael Schumacher has struggled since his return to Formula One and his best finish has been fourth.
As a result, the Brackley-based outfit are fourth in the constructors' standings, 107 points behind leaders McLaren, with Red Bull and Ferrari second and third.
However, Brawn feels that they are not far off the pace of their rivals and insists that, with 11 races still to go, there is enough time to turn things around and challenge for the titles.
"With the new points system this year, we are still within striking distance of the championship leaders and we will continue with our efforts to become more competitive" said Brawn.
"We have a number of the basics right and the difference between winning and losing is small. We need to close that difference."
Brawn admitted that he was expecting better results in Montreal last weekend, where Rosberg finished sixth and Schumacher 11th, and hopes to be much more competitive in Valencia on June 27.
"Our car was well suited to the circuit in Montreal and our pace during the race was encouraging," he said.
"Unfortunately qualifying was a disappointment and we placed well below our potential, which compromised our weekend.
"Nico was clearly one of the quickest cars during the race and his climb from the midfield to sixth place was a very impressive performance.
"Michael showed good promise but damage to his front wing on the first lap and then the puncture put him out of the running and we were too ambitious with the use of the option tyres, which left him struggling for pace.
"Looking ahead to Valencia, the circuit is similar to Montreal in many ways with long straights connected by slow corners, which should suit our car.
"We have an upgrade package, which will be another good step in our development towards competing at the front of the field."
Seven-time champion Schumacher, who has never raced at the Valencia street circuit, is relishing the opportunity and hopes that further upgrades to his car will help him challenge rival teams McLaren, Red Bull and Ferrari.
"Valencia is a track which I have never raced on before so it will be another new experience for me but one which I am very much looking forward to," he said.
"I have always been quite good at adapting quickly to new situations and I strongly expect that to be the case in Valencia.
"I like going into new experiences like this and having detailed discussions with my engineers about the challenge.
"We will bring further updates for our car, which should help to improve the performance. We have already seen that the car has improved steadily over the last few races and in Canada, the pace was better, even if unfortunately that did not show in the results.
"That's why I look forward to travelling to Spain a great deal."
Copyright 2010 AFP Global Edition
