Mercedes boss Toto Wolff is wary that Red Bull will provide a "major threat" at this weekend's Hungarian Grand Prix, as the outfit bids to improve on its recent sub-par form at the Hungaroring.
Lewis Hamilton delivered his first Mercedes victory at the circuit in 2013 but despite its dominance in Formula 1 since the V6 era began in 2014, the squad has not emerged on top in Hungary.
Red Bull's Daniel Ricciardo prevailed in a wet/dry race in 2014 while last year Sebastian Vettel secured victory for Ferrari, as Mercedes drivers were involved in collisions en-route to sixth and eighth.
With Red Bull having enjoyed a resurgence since Formula 1's return to Europe, having collected victory in Spain and further podiums in Monaco, Austria and Britain, Wolff says Mercedes is aware of Red Bull's capabilities.
"This circuit has not been kind to us over the past two years and it plays to the strengths of our rivals," he said.
"The Red Bull, for example, is a car that functions well where high drag isn't penalised as much as at other types of circuit.
"So, in wet conditions and at low-speed circuits such as the Hungaroring, they are a major threat.
"We will need to be flawless to come out on top at this track."
The Hungaroring is the sole circuit on the calendar where Mercedes has yet to taste victory since the V6 era began in 2014.