- FENDER
- chevron_right HISTORY: 1985-PRESENT
In 1984, CBS decided to sell Fender. Offers came in from IMC (Hondo, Charvel/Jackson), and the Kaman Music Corporation (Ovation). Finally, CBS sold Fender to an investment group led by William Schultz in March for twelve and a half million dollars. This investment group formally became the Fender Musical Instruments Corporation (FMIC). As the sale did not include production facilities, USA guitar production ceased for most of 1985. It has been estimated that 80% of the guitars sold between late 1984 and mid-1986 were made in Japan. Soon after, a new factory was built in Corona, California, and USA production was restored in 1986 and continues to this day. FMIC expanded their company by purchasing Sunn amplifiers in 1987.
In 1990, the Fender (FMIC) company built an assembly facility in Mexico to offset rising costs of Asian production due to the weakening of the American dollar in the international market. Fender also experimented with production based in India from 1989 to 1990. The Fender (FMIC) company currently manufactures instruments in China, Japan, Korea, Mexico, and the U.S. In 1991, Fender relocated its headquarters from Corona, California to Scottsdale, Arizona. This is where they are today. In 1992, the amplifier custom shop was opened.
As FMIC began to expand in the 1990s, they also started to buy into other interests. The Guild guitar company has been making high-quality instruments since 1952, but the company went up for the sale in the early ´90s. Fender completed the sale in 1995 and began building instruments in the Custom Shop in Nashville, Tennessee in 1996. Fender also picked up Manuel Rodriguez guitars for classical guitars handcrafted in Spain.
As reported in the March 1998 edition of MMR, Fender CEO Schultz sent out a letter to Fender dealers (dated January 9, 1998) which discussed the company establishing a limited number of Fender mail-order catalog dealers. Fender has announced specific guidelines as to what is allowed in mail-order catalog sales. Most importantly, Fender "announced a minimum advertised price (MAP) policy applicable to mail-order catalogs only," stated Schultz, "The MAP for mail-order catalogs is set at a maximum 30 percent off the Fender suggested retail price, and will be enforced unilaterally by Fender." What this does to the Fender retail price overall is basically lower the bar - but the impact on regular guitar stores has not been fully realized. While it´s one thing to buy because of a discounted price through a catalog, it´s a different situation to walk into a dealer´s shop and be able to "test drive" a guitar before it is purchased. Retail music stores have to be aware that there is now an outside source (not under their control) that dictates minimum sales prices -- the national catalogs. Of course, retail shops still control the maximum sale price applied to an instrument. Readers familiar with the Blue Book of Electric Guitars will note both the manufacturer´s suggested retail price and the appropriate discounted price (100% listing) under currently produced models.
In 1998, Fender opened up a new 177,000-square-foot manufacturing facility in Corona, California. This is a state-of-the-art facility that can pump out 350 guitars a day and the factory discharges 95% clean air. In Summer 2002, Fender announced the purchase of the Gretsch guitar line. This buy-out went into effect January 1, 2003. In 2003, Fender also aquired the rights to SWR Amplifiers. In 2005, Fender expaned their vast line once again by aquiring Tacoma/Olympia/Orpheum. Fender's line now includes Fender, Squier, Gretsch, Guild, Benedetto, Jackson, Charvel, Tacoma, Olympia, Orpheum, Sunn, and SWR. In 2012, Fender moved its headquarters from Scottsdale to a larger space in North Scottsdale.
(Source for earlier Fender history: Richard R. Smith, Fender: The Sound Heard ´Round the World.)
In 1990, the Fender (FMIC) company built an assembly facility in Mexico to offset rising costs of Asian production due to the weakening of the American dollar in the international market. Fender also experimented with production based in India from 1989 to 1990. The Fender (FMIC) company currently manufactures instruments in China, Japan, Korea, Mexico, and the U.S. In 1991, Fender relocated its headquarters from Corona, California to Scottsdale, Arizona. This is where they are today. In 1992, the amplifier custom shop was opened.
As FMIC began to expand in the 1990s, they also started to buy into other interests. The Guild guitar company has been making high-quality instruments since 1952, but the company went up for the sale in the early ´90s. Fender completed the sale in 1995 and began building instruments in the Custom Shop in Nashville, Tennessee in 1996. Fender also picked up Manuel Rodriguez guitars for classical guitars handcrafted in Spain.
As reported in the March 1998 edition of MMR, Fender CEO Schultz sent out a letter to Fender dealers (dated January 9, 1998) which discussed the company establishing a limited number of Fender mail-order catalog dealers. Fender has announced specific guidelines as to what is allowed in mail-order catalog sales. Most importantly, Fender "announced a minimum advertised price (MAP) policy applicable to mail-order catalogs only," stated Schultz, "The MAP for mail-order catalogs is set at a maximum 30 percent off the Fender suggested retail price, and will be enforced unilaterally by Fender." What this does to the Fender retail price overall is basically lower the bar - but the impact on regular guitar stores has not been fully realized. While it´s one thing to buy because of a discounted price through a catalog, it´s a different situation to walk into a dealer´s shop and be able to "test drive" a guitar before it is purchased. Retail music stores have to be aware that there is now an outside source (not under their control) that dictates minimum sales prices -- the national catalogs. Of course, retail shops still control the maximum sale price applied to an instrument. Readers familiar with the Blue Book of Electric Guitars will note both the manufacturer´s suggested retail price and the appropriate discounted price (100% listing) under currently produced models.
In 1998, Fender opened up a new 177,000-square-foot manufacturing facility in Corona, California. This is a state-of-the-art facility that can pump out 350 guitars a day and the factory discharges 95% clean air. In Summer 2002, Fender announced the purchase of the Gretsch guitar line. This buy-out went into effect January 1, 2003. In 2003, Fender also aquired the rights to SWR Amplifiers. In 2005, Fender expaned their vast line once again by aquiring Tacoma/Olympia/Orpheum. Fender's line now includes Fender, Squier, Gretsch, Guild, Benedetto, Jackson, Charvel, Tacoma, Olympia, Orpheum, Sunn, and SWR. In 2012, Fender moved its headquarters from Scottsdale to a larger space in North Scottsdale.
(Source for earlier Fender history: Richard R. Smith, Fender: The Sound Heard ´Round the World.)