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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.Fender amplifiers became established with the tweed series, wood cases covered in varnished cotton twill in the manner of suitcases of the era.(The nickname is a misnomer, as tweed is a coarse woollen fabric, often woven in a twill pattern.) They were produced for more than a decade.
It was established in 1890 by Victor Carroll Squier in Battle Creek, Michigan. By 1975, Squier became defunct as a manufacturer and a brand name for strings, as Fender opted to market its strings under the Fender brand name.Kanda Shokai owned the Greco brand name and one of the conditions of the Fender Japan agreement was that Kanda Shokai cease production of its own Greco Fender copies.