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Ferrari team principal Maurizo Arrivabene insists that his team's title fight is not over.
That is despite Mercedes' 131 point lead in the constructors standings and a winless streak stretching back to the Singapore Grand Prix of September last year.
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Speaking at the British Grand Prix, Arrivabene refused to write of Ferrari's season.
"We are not even half of the season gone," Arrivabene said. "Of course the fight is not over.
However, he conceded that the team has to make improvements, namely to their car's aerodynamics and gearbox, in order to challenge Mercedes,
"I do not hide the fact that if we want to keep this dream alive, we have to get some things under control," he admitted.
"I cannot answer that in detail yet [what has caused recent gearbox failures]. I believe it is the material and I hope that it is not the basic design."
Although the aim for Ferrari is to fight Mercedes, Red Bull's recent resurgence has not gone unnoticed to the Italian team.
"The first objective must be to once again put Red Bull Racing behind us. Only then can we attack Mercedes," Arrivabene said. "In Hungary we will know where we stand and that Britain was the exception. We cannot afford a defeat at the Hungaroring."
No need to panic says Vettel
Ferrari endured a difficult British Grand Prix weekend, being clearly outpaced by Red Bull, as well as Mercedes.
But Sebastian Vettel hit back at suggestions that the British Grand Prix had been all bad for Ferrari, telling a reporter: "You're always so negative, even when things don't go well once or twice."
"In the race we were quick, just not quick enough to compete with Red Bull and Mercedes," he said. "But there is no need to panic, it's just a bad day."
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