The series was discontinued under the Squier name in 1998 and moved to Mexico, as guitarists were unwilling to spend such high prices for Squier guitars.
The series is still highly regarded and has held much of it's value on the used market.
This arrangement benefited Fender because it removed the Greco Fender copies from the Japanese market, which were selling in Japan at much lower prices than the American made Fenders and it also benefited Kanda Shokai because Kanda Shokai could then distribute Japanese made Fender branded guitars in Japan.
Further negotiations between Fender and Japanese guitar factories took place.
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 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.
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.
The line consisted of 6 Stratocasters, a Fat (Humbucker at the bridge position) Stratocaster, a Fat Telecaster (Humbucker at the neck position) and a Thinline Telecaster.
The Squier lineup was augmented in 1996 with Affinity series guitars and basses.
Entry-level Affinity Series instruments were straightforward, basic Stratocaster, Telecaster and Precision Bass guitars in black, red and white. MN: M = Mexico, N = Nineties (1990s), the first number following the serial number prefix is the year.
In 1996, Squier began to manufacture the Vista Series, which saw them introducing their own unique guitar designs independent from the Fender mother company for the first time.
Made in the same factory as the Japanese Fenders of the era, they were known as high quality guitars.