Mercedes motorsport boss Toto Wolff insists the W04 hasn't turned into a bad car in the space of a few days.
Things were looking up for the Brackley-based squad after Nico Rosberg followed up his Monaco Grand Prix victory with success at the British GP.
However, barely a week later Rosberg and team-mate Lewis Hamilton found themselves back among the midfield runners at the Nurburgring as they once again battled with high levels of degradation in the heat.
Despite their struggles in Germany, Wolff believes they still have a "pretty quick" car.
"Germany was not a huge disappointment, it was just disappointing," he told Autosport.
"It is not nice to see a car which won seven days before not performing in the same way - going from a top car back to a midfield performance.
"But we know the car is pretty quick. A car doesn't deteriorate in just seven days."
Mercedes will also no doubt lose out on valuable data when they miss the Pirelli tyre test at Silverstone this week following their ban.
Wolff, though, feels the team can still get to the bottom of their degradation issues despite the ban.
He added: "It highlights that we have to put our heads together. I think we have pretty intelligent people and we have to get on top of the problems."