Fender began negotiations with several Japanese musical instrument distributors and reached an agreement with Yamano Gakki and Kanda Shokai to establish Fender Japan.
In the early 1980s, Japanese labor and production costs were much lower than in America and to compete with the Japanese made guitars, Fender moved the lower priced Fender guitar production from America to Japan.
Fender was also losing sales in Japan to Japanese guitar brands such as Tōkai, Greco and Fernandes and the establishment of Fender Japan would benefit Fender sales in Japan, as well as overseas.
The first Fender Japan guitars are known as the JV Fenders and JV Squiers, with JV standing for "Japanese Vintage" to reflect the guitars were made from the original blueprints of the vintage US guitars, were made by the Fuji Gen Gakki factory in Japan, using technical support from Fender.
The SQ Squier series was introduced in late 1983 to early 1984.
The SQ Squier series was based more on 1970s Fender models and also had USA made pickups installed.
In 1996, Squier began to manufacture the Vista Series, which saw them introducing their own unique guitar designs independent from the Fender mother company for the first time.
Squier Company manufactured strings for violins, banjos, and guitars.
In 1982, the Squier brand was reactivated by Fender to become its brand for lower priced versions of Fender guitars. S.-trained violin makers and is often referred to as "the American Stradivarius." Victor returned to Battle Creek, where he opened his own shop in 1890. With a limited market for violins in Battle Creek, however, Squier astutely sought relationships with national music schools and famous violinists.
The first Fender Japan models introduced in May 1982 were the 19 series, which were Fender Stratocaster models ST'57-115, ST'57-85, ST'57-65, ST'62-115, ST'62-85, ST'62-65 and the Precision Bass models PB'57-95, PB'57-70, PB'62-98, PB'62-75.