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. Squier Company was a strings manufacturing company for violins, banjos, and guitars.
Until the introduction of the Fender Squier series, Fender had never produced lower priced guitars based on its main Stratocaster and Telecaster models and had always used different model designs for its lower priced guitars.
In the late 1970s and early 1980s Fender was facing competition from lower priced Japanese made guitars.
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.
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.
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.
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.