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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.Fender began negotiations with several Japanese musical instrument distributors and reached an agreement with Yamano Gakki and Kanda Shokai to establish Fender Japan.Jerome Bonaparte Squier, a young English immigrant who arrived in Battle Creek, Michigan, in the latter part of the 19th century, was a farmer and shoemaker who had learned the fine European art of violin making. Victor Squier started making his own hand-wound violin strings, and the business grew so quickly that he and his employees improvised a dramatic production increase by converting a treadle sewing machine into a string winder capable of producing 1,000 uniformly high-quality strings per day.He moved to Boston in 1881, where he built and repaired violins with his son, Victor Carroll Squier. Squier violin strings, banjo strings and guitar strings became well known nationwide and were especially popular among students because of their reasonable price. Squier Company in early 1965, shortly before Fender itself was acquired by CBS in May of the same year.
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The higher priced Fender guitars were made in the United States and could not compete with the lower prices of Japanese made Fender copies.In the early 1980s, Japanese labour 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.
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