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Tokai was seriously considered to start building the first Japanese made Fenders, but after a breakdown in negotiations, Fuji Gen Gakki was chosen instead.

The initial Squier models were launched on July/August 1982.

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.

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.

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.To this day, their violins are noted for their exceptional varnishes, and they command high prices as fine examples of early U. In the 1930s, Squier began making strings for the era's new electric instruments; the company also sold pianos, radios and phonograph records until divesting itself of all string-related products in 1961. Squier Company became an official original equipment manufacturer for Fender in 1963. By the mid-1970s, the Squier name was retired as the strings had taken the Fender name.Fender Musical Instruments Corporation entered the picture in the 1950s, when the V. Squier Company began supplying Southern California inventor and businessman Leo Fender with strings for his unusual new electric guitars. Before the Fender Squier line of guitars was introduced in 1982, Fender was making lower priced guitars such as the Fender Lead series at its Fullerton, California plant.These models were Fender models and not Squier models.The stratocasters had Fender USA pickups installed and were made for the Japanese market only and not for export.

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The SQ Squier series was introduced in late 1983 to early 1984.

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