We really need an auto-electrician to chime in here. I'm by no means an expert.
As I understand it, the two 16AWG lengths are running in parallel to each other. The different lengths split the current at a ratio of around 49:1.
98% of the current goes through the shorter 16AWG wire (approx. 100mm - effectively a fusable link), while the remaining 2% goes through the longer 16AWG wire (approx. 4900mm to the gauge and back).
The choice to use 16AWG was made a while ago, and I can't really remember which charts I looked up. I haven't had a problem with it though. I'll run my car again soon and see If I can use an IR gun to measure how hot it's getting.
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