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.Most specifications for a given Fender instrument model change little (if at all) throughout the lifetime of the model.While there have been periods of dramatic change—such as the transition periods between the Leo Fender years and the CBS years or the transition between the CBS years and the current ownership—most models are generally feature-specific and do not change from year to year.
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.
There were also some KV (Korean Saehan(Sunghan)) serial numbers followed by 2-digit year.
Comes with Dimarzio pickups and coil tap on the back pickup (lift the back tone control knob).
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.
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.