Jaguar looking forward
Jackie Stewart remained upbeat despite Jaguar's disappointing start to the 2000 Grand Prix season
Both cars retired inside the first seven laps in Melbourne but Stewart insisted: "Our prospects still look good.
"Today was disappointing, obviously, but we are capable enough, and fast enough.
"It's just that we are not quite ready yet. We need to work on our reliability but it's heartening to know that both BMW Williams were behind us and one of them finished third."
Johnny Herbert was forced to retire after just one lap with a broken clutch, while British team-mate Eddie Irvine spun off trying to avoid Pedro de la Rosa's Arrows on lap seven.
Stewart added: "Eddie was very unfortunate. De la Rosa spun, hit the wall and Eddie tried to brake to avoid him, spun and then the car stalled.
"It was a racing accident but in Johnny's case it was a mechanical problem and just very bad luck.
"We just didn't have it together for him."
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