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Dont forget that management is looking at the budget of the other teams as well. If Sauber or Force India had Mercedes' budget they would be doing much better than this.
When mercedes bought the team everything was new, the transporters, the motorhome. They did a major overhaul, to bring in excitement. They only bought Brawn because it won a championship. They expected to get at least regular podiums. If Nico and Shumi could manage 3 podiums a year each, I think the team would have been happy.