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Hasn't been looking great for McLaren since they joined with Honda. It brought to light their flawed car design philosophy. It's obvious when another team can take a Honda engine (Toro Rosso) and clearly not be crap every single outing.
The single biggest mistake McLaren made was in 2009 when they gave Brawn GP permission to use the Mercedes engines. Without that, Brawn GP would most likely have been at the back of the grid (if not folded altogether) Mercedes wouldn't have bought the team, Hamilton possibly wouldn't have jumped ship and McLaren would still be the Mercedes works team.