You want to buy the new 2020 Honda CBR1000RR-R Fireblade. You have always wanted to buy an ‘exotic’, but the high cost put’s them out of your reach. An exotic could set you back the best part of AUD 50,000. With that much cash, you could park a new Ducati Panigale V4 in your garage and then spend many more thousands on performance parts. Or, you could go super fancy by purchasing an MV Agusta Brutale 1000RR for your daily trip to the shops for milk. Alas, all you can afford is the trusty Fireblade. Ahh, think again. You can’t afford one anymore.

Wait. What? The same CBR1000RR Fireblade that has dominated sportbike sales for years thanks to its road-friendly power delivery and ergonomics, and affordable price? Yep, that one. For the first time since it revolutionised modern sportbikes in 1992, the Honda CBR1000RR Fireblade is no longer a viable option for the average Joe and Jane. Let me explain.

[Click here to read more about the new Fireblade]

[Click here to see how the new Fireblade is designed to be ridden]

FOLLOW THE MONEY

Honda recently announced that it had manufactured its 400 millionth motorcycle after producing 20.82 million units in the 2019 fiscal year. Cursory consumption of these figures reveals a successful manufacturing enterprise. But look deeper and you will see that Honda has redirected its focus away from the once booming sportbike segment. The chart below clearly shows where Honda makes its money.

You see, Honda manufactures millions of small capacity motorcycles for ‘emerging’ markets such as China, India, Indonesia and Vietnam (is China still emerging?). For a long time now, manufacturers wanting to make serious money have set up enterprises in those regions with the largest volumes and highest growth. Essentially, this is what has been happening behind our backs while you and I have been lamenting the increasing cost of our half-strength vanilla-infused whipped cream Frappe Lattes. If you’ve been wondering why Honda seems to have lost its innovative streak in the last few decades, this is why. They have moved away from building gear-driven V4’s to producing millions of cookie-cutter low tech motorcycles for the mega masses.

In contrast to the burgeoning markets of Asia, ‘Western’ markets are but a small blip on the motorcycle market radar representing comparatively low sales volumes. Mature markets offer little growth upside as potential motorcycle consumers are either debt laden or ageing or both. Manufacturers are therefore forced to offer high cost, high profit margin products to offset low sales and high development costs. Put yourself in Honda’s shoes. Where would you focus your efforts in order to maximise profits and underpin growth?

YEAH, SO WHAT?

This is where the 2020 CBR1000RR-R Fireblade comes in. Declining sportbike sales cannot support the ever-increasing costs of developing and producing motorcycles like the Fireblade. In response, Honda has shifted the Fireblade’s focus from readily accessible superbike for the masses, to homologation racer. The CBR1000RR-R SP is priced at $49,999 (plus on-road costs) in Australia. To put that into perspective, the Ducati Panigale V4S is $37,490 (plus on-road costs) and the V4R $59,990 (plus on-road costs). Elsewhere, the new SP Blade is £23,499 in the UK, €26,990 in Italy (€22,990 for the base model), and $28,500 in the USA. The table below summarises Fireblade pricing in selected markets and, for comparison, lists some of its competitors. The numbers are eye-opening.

The superseded 2019 Fireblade SP was $29,200 in Australia, making the new SP a whopping $20,800 more than the old model. You do the maths for your region. Consider also the fact that the former SP was a significant increase in price over the Blades of yore and it seems a severe case of inflation influenza has set in. This new price point effectively removes the Fireblade from the shopping list of the average sportbike shopper. At that price, how many new generation Fireblade’s do you think will be appearing at local track days going forward?

YOU THINK THE BASE MODEL WILL SAVE YOU?

If you live in the United States or Australia, the news is even worse. You won’t have the option of purchasing the base model CBR1000RR-R. The current generation model will fulfil that role and will likely be sold at the outgoing price point. Considering the price of the base Fireblade in other regions, that is not a surprise. Motorcycle sales in the USA and Australia have been on the decline of late.

A costly base model, therefore, is not an attractive proposition for buyers that could purchase the higher grade version of competitor bikes for the same price or less. Let’s compare again for Australia. Converting British Pounds to AUD, the base model comes in at $38,105, a humongous $17,606 more than the old base model which had a list price of $20,499 just last year. Honda has deemed the base price to be palatable unless you are in the USA or Australia.

BABY DON’T LEAVE ME

The thing is, Honda needs the Fireblade, even if it can’t afford it. Repositioning the Fireblade as a focussed machine at a stratospheric price point turns it into a marketing exercise. There’s just one problem; this just might kill it in its traditional markets. Looking further down the path, Honda may be anticipating a scenario in which Eastern markets begin consuming more high-profit margin motorcycles like the Fireblade. This would more than fill the void of lost Western market sales. A premium motorcycle winning on racetracks around the world can be used to market Honda to those markets in which it does sell squillions of bikes.

Motorcycle racing is extremely popular in Asia. Take Indonesia as an example. Dorna (the owners of MotoGP and WSBK) are desperate to host races there to tap into that popularity. Honda holds a 73% share of a market which sold 6.38 million motorcycles in 2018. And Indonesia was only third behind India which had a market of 21.5 million units in 2018. As they say, follow the money. If we accept this scenario to be true, then building the new Fireblade may well be a loss-making sacrifice to the money Gods.

TROUBLE AHEAD?

Is this a flawed strategy for Honda? What if racing success is not forthcoming? Try as I might, I can’t envisage a scenario where enough people would choose a Fireblade over an ‘exotic’ like the Panigale V4 at that price point (or an Aprilia RSV4 for even less money) . If Honda wanted to reposition the Fireblade into the ultra-premium category, would it not have made more sense to have given it a V configuration engine and therefore tap into Honda’s extensive V racing pedigree? Perhaps they should have built a new RVF at that price. After all, the RVF line represents Honda’s exotic racing past. Let the Fireblade satisfy the needs of the masses. The round peg sportbike for the masses is being forced into a high-priced square hole. This would have made more sense and been an easier sell for an RVF. The CBR proletarian may just rebel.

THIS IS PERSONAL

I don’t want the riding experience of my AUD 50,000 motorcycle to be little different to an AUD 19,000 GSXR-1000. What this does prove is that Honda cares not for average Joe and Jane sales. Instead, they are more interested in leveraging racing and marketing success to drive huge volume sales worldwide. Honda obviously thinks a conventional inline four will do the job, just as the Kawasaki ZX-10R has proven over the last five years. Honda wants a piece of that pie. The cost is the alienation the average sportbike rider.

Why does any of this matter? Well, I love sportbikes, and anytime I see a decline in this category, in whichever form, I get the heebie-jeebies. I love the Fireblade. I used to own a 2009 model in Honda Red. It was one of my all-time favourite bikes. I am just annoyed that I will not be able to afford the new one.

INTERESTING CONTRADICTIONS

Thus far, I have been laying the case for Honda making a conscious decision to build the ultimate platform for racing, damn the price. And yet, there do appear to be cost-cutting concessions. The dilution of focus, otherwise known as bean-counting, has restricted the potential of many inventions. At first glance, that seems to be the case here too. For starters, the machine is equipped with rubber brake lines at a time when nearly all of its competitors have steel braided lines. Also, there is no sign of forged or carbon wheels, something that is found on uber-expensive competitors. You have to wonder how BMW can afford to offer carbon wheels on its M package S1000RR at the price that it does, while Honda is unable even to offer forged wheels at a much higher price point.

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One could make the argument that these items will be replaced with racing items, and therefore there is little sense in including them on the road version. But if this is the case, then why has Honda decided to include keyless ignition, and a name brand titanium exhaust (and strangely enough, under seat storage space)? The keyless ignition is especially baffling for a motorcycle meant for the track. Track day riders will be expected to store their key fob in their race-fit one-piece leathers while they fly around a race track. Surely these things are unnecessarily costly inclusions if they are only going to be scrapped on the race bike? So, is this cost-cutting or confusion among the ranks? Something doesn’t add up (and don’t say the price).

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FINAL THOUGHTS

Has Honda lost its mind with the 2020 CBR1000RR-R Fireblade? No, they have not. They are making intelligent business decisions calibrated to sell a lot of motorcycles in the biggest markets on Earth. Sadly though, if you are a Honda sportbike enthusiast, this may be the end of the line. What will happen to the countless Fireblade devotees who can no longer afford one? What will happen to the pedigree and reputation built over decades? I guess you could always change your name to Haslam or Bautista to help console you with the fact your monthly repayments are taking food off the table. And let me leave you with this. What will happen if it doesn’t win?

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EPILOGUE

Fly on the wall – Honda motorcycle new product department meeting.

Engineers – “Boss, the 2020 CBR1000RR Fireblade is going to cost 50% more than the previous version because of the technology we are including.”

Boss – “50%?”

Engineers – “Yes.”

Sales Executive – ‘Boss, few people will likely be able to afford them at that price. We will sell a small fraction of the amount we sold with previous generations?”

Boss – “No one will buy them at that price?”

Sales Executive – “No they won’t.”

Product Engineer – “The cost/price ratio will result in a loss for every motorcycle.”

Boss – “A loss?”

Product Engineer – “Yes.”

Marketing Executive – “If we win races and championships with it, especially the Suzuka 8-Hour (under breath – damn those pesky Yamaha’s and Kawasaki’s), we can use that success to sell 15 million motorcycles across Asia each year.”

Boss – “15 million?”

Marketing Executive – “Yes.”

Historical Department – “We risk losing the continuity and reputation of a brand painstakingly crafted through many generations with carefully calibrated incremental improvements brought to market with accessible pricing.”

Boss – “Hmmm, 15 million?”

Marketing Executive – “Yes.”

Boss – “Will it win?”

HRC – “There’s a fly in here. Someone swat it!”

[Click here to read more about the new Fireblade]