Table Of Contents

1. Yuichiro Yokouchi
2. From Farmer to Industrialist: The Birth of FUJIGEN Gakki
3. Trials and Triumphs in the Early Day
4. Sanzai Factory
5. The Road to Export
6. Matsumoku Industrial
7. ​Focus on Exports
8. A Journey to America
9. The Turning Point: A Stranger’s Help
10. Direct Deals with the U.S.
11. Hirata Factory
12. Greco
13. ​From Boom to Bust
14. Yuichiro Yokouchi President
15. Rising from the Ashes
16. Greco Project Series
17. ​Resilience and Renewal
18. The Fender Deal​
19. The evolution of FUJIGEN: mechanization, innovation, and people-centric solutions

Yuichiro Yokouchi

This is not only the story of FUJIGEN Gakki and its pivotal role in guitar manufacturing—above all, it is the story of its president, Yuichiro Yokouchi, a determined and visionary entrepreneur. Yuichiro's quiet strength helped shape the course of Japan’s electric guitar industry. Raised in a farming family, with no formal training in music or business, he built FUJIGEN Gakki from the ground up through sheer perseverance and instinct. His leadership blended humility, tireless dedication, and a deep respect for craftsmanship. He firmly believed that Japanese guitars could rival the world’s best — not by imitation, but through refinement and precision. Modest yet bold, rooted in tradition yet forward-looking, he overcame early setbacks with calm resilience and unwavering belief. His legacy lives on in every instrument born of his uncompromising pursuit of quality and innovation.

Yokouchi with his mother, wife and children (before he left for America)

Yuichiro Yokouchi had a deeply respectful and human-centered approach to leadership. He viewed his employees not merely as workers but as people with unique value, and he believed in treating them with fairness, empathy, and dignity. His philosophy emphasized that business should be built “on people”. Yuichiro was known for earning the trust of his team through humility and consistency. Even in difficult times, he prioritized maintaining employment and ensuring his workers' well-being, which gained him deep loyalty and admiration.

Yuichiro Yokouchi was born on September 18, 1927, in Sanzai, which was once a rural area of Matsumoto. His family cultivated rice and vegetables in the countryside of ​Matsumoto, Nagano Prefecture. After two years of working as a substitute teacher, Yuichiro decided to leave the profession and take over the family farm.
In 1959, Yuichiro Yokouchi supported his uncle’s successful campaign for the prefectural assembly, motivated by gratitude for the support his family had received after his father’s early death. Though inexperienced, he became deeply involved and was later accused and arrested for alleged vote-buying—a painful 20-day detention that led to deep self-reflection and a renewed commitment to serving others. He made a vow: once he was released, he would do everything he could to help those in need.

The disruption caused by the campaign and his arrest severely impacted his farming, cutting the family income in half. Despite this, Yokouchi remained a respected voice in agricultural reform. That year, he met businessman Yutaka Mimura, who encouraged him to consider entering the industry. Yokouchi resisted at first, identifying solely as a farmer.
A pivotal moment came during a lecture by renowned agricultural economist Seiichi Tohata, who warned of Japan’s outdated farming practices and stressed the need for modernization amid rapid industrialization. Tohata’s insights opened Yokouchi’s eyes to the potential of the secondary industry.
That day marked a turning point. Yokouchi realized that, compared to the struggles of farming, working in industry offered the opportunity to contribute more meaningfully to Japan’s future.

Yutaka Mimura and Yokouchi at Matsumoto Castle

From Farmer to Industrialist: The Birth of FujiGen Gakki

In 1959, Yuichiro Yokouchi received a surprise visit from his friend Keikichi Watanabe and businessman Yutaka Mimura, who invited him to manage a struggling violin factory in Kiso.
Mimura asked Yuichiro: “I’m planning to acquire a company affiliated with the Suzuki Violin Company in Kiso. Yokouchi, would you be willing to manage it?”
At first, Yokouchi was taken aback. The offer seemed completely out of the blue, far removed from his life in agriculture. Mimura had approached him about business before, but this felt different. Still, the spark of possibility took hold.
Though the plan fell through, the idea of entering the instrument manufacturing industry took root. The memory of a lecture by Professor Tohata on modern management lingered in his mind, stirring something within Yuichiro. Encouraged by his mother—who had never intended for him to remain a farmer—and driven by a newfound purpose, Yokouchi partnered with Mimura to start a company in Matsumoto.
​They reached out to Shiro Suzuki, a violin maker in Matsumoto and brother of Shinichi Suzuki, the founder of the Suzuki Method. With this connection, they hoped to attract talented craftsmen—most notably Masatoshi Yokoyama, whose involvement was key.

After some negotiation, Yokoyama agreed to join the team as factory manager, with a salary of 12,000 yen per month—double his previous pay. With his help, production preparations began, but they still needed a factory space.
Struggling to find an affordable location in town, Yuichiro suddenly had an idea: “Why not use the cow shed from my childhood, when I was three?” 

The original factory, a converted cowshed

Though modest, at approximately 100 square meters, the structure could work with some renovations. Mimura agreed, but funding remained a challenge. To raise the necessary funds, Yuichiro sold the family’s cows—his main source of income—for 300,000 yen. Mimura contributed the remaining 700,000 yen, bringing the total capital to one million yen. Together, they decided to establish a joint-stock company.
As for roles, the structure was set:

• Yutaka Mimura became President.
• Yuichiro Yokouchi was appointed Vice President.
• Masatoshi Yokoyama served as Factory Manager.

They all agreed to take modest salaries of 12,000 yen each, prioritizing fair wages for their workers.

The Yokouchi family storehouse with the name 'Kataya'

Then came the challenge of naming the company. Various ideas were tossed around, but nothing seemed to fit. It was then that Mimura, gazing at the old family storehouse, noticed the family crest (yagō) carved into its white-plastered wall and suggested, “Let’s use Yokouchi’s yagō. Let’s go with Kataya Gakki Kabushiki Kaisha [Kataya Musical Instruments Co., Ltd., Editor’s Note]!”
Yuichiro panicked. “No, that’s no good. Please don’t do that.” He feared backlash from his relatives, who might think he was squandering a family legacy. 

After further discussion, as the sun began to set, they finally agreed on a name that captured both ambition and national identity: Fuji Gen Gakki Seizō Kabushiki Kaisha—which can be translated into Fuji String Musical Instrument Manufacturing Inc..
“Fuji” symbolized Mount Fuji, a clear and proud image of Japan that is recognized even overseas. It also reflected their dream of becoming the best in Japan.

On May 2, 1960, the capital was ready. On May 4, Yuichiro walked into the Honmachi South Branch of Hachijuni Bank and made the deposit—holding more money than he’d ever touched. FUJIGEN Gakki was now a legal entity.
The company launched with a President, a Managing Director, a Factory Manager, three other directors, fifteen shareholders, and six employees. 

They hired three craftsmen, two part-time students from Matsumoto Technical High School—Kikuto Kamijo and Muneo Ishiguro—and Masako Sugimoto, who was affectionately known as the “mother of FUJIGEN guitars.”

Her first job was selecting wood boards, which at the time came from Hokkaido. She would inspect the planks, sorting out those with knots or cracks and passing only the good ones to the next stage of production.
Her next assignment was celluloid binding, a process that involved softening the celluloid in a chemical solution, then bending it and carefully wrapping it around the body of the instrument.
​She is well known for coming up with the idea of using a noodle-making machine to cut 2mm-wide strips of celluloid.

Masako Sugimoto

Makoto Sugimoto

Her husband, Takashi Sugimoto, founded Sugimoto Woodworks, a subcontractor factory that handled tasks such as body sanding.
Masako retired from FUJIGEN in 1983 at the age of 53, but even after retirement, she continued to be involved in guitar making alongside her husband.
Their second son, ​Makoto Sugimoto, also worked at FUJIGEN and later established the Custom Edition Team.

At first, the focus was on hand-made violins. But soon, market research revealed that guitars were more profitable. Yokoyama purchased a 2,500-yen guitar from Zen-On, dismantled it, and began studying its structure. The team shifted to guitar production, learning through trial and error.
One of their classical guitars even won a prize at the Shinshu Woodworking Exhibition that July. Encouraged by this success, they expanded to 25 workers, including Tomohisa Yamazaki, who would later become the third-generation factory manager.

Trials and Triumphs in the Early Days

FUJIGEN Gakki’s main customers were Kanda Shokai and Kamano Gakki in Tokyo. But in October, disaster struck. Nearly all of the 1,000 guitars they had delivered were returned due to fret intonation issues. Fundamental mistakes in fret placement and scale measurement revealed a lack of understanding of intonation theory. It was a crushing blow. The guitars were returned by truck, and in despair, the team burned them in an open lot near the cow shed.
They were 2 million yen in the red, twice their initial capital. But instead of giving up, the team committed to improvement. They brought in technical experts from Kamano Gakki and the Tokyo Institute of Technology, and overhauled their entire production process. Looking back, Yuichiro realized they had skipped over essential foundational knowledge that should have been acquired before they began manufacturing instruments.

1960’s Fuji brand acoustic guitar

As their instruments improved, they reached out to Masao Koga, a respected and influential musician. After several persistent backstage visits, he eventually agreed to test one of their guitars—and expressed satisfaction with its quality. His approval helped restore confidence in the company’s products.
From that moment, things began to turn around. By December, new orders rolled in from Kamano Gakki, Kanda Shokai, Nakai Gakki, and Kyowa Trading. Every bit of criticism became fuel for improvement. The dream born in a cow shed had survived its first trial—and emerged stronger.

Sanzai Factory

In 1961, FUJIGEN Gakki began to turn a small profit, but their converted workshop couldn’t keep up with the growing number of orders. To expand production, Yuichiro Yokouchi converted part of his home into a makeshift factory. Still, more space was needed.
As the company’s executives began discussing the construction of a proper factory, they quickly realized they lacked the necessary capital. In response, Mimura generously offered to lend 2 million yen from his savings. Yuichiro, in turn, offered a plot of land he owned along a prefectural road, just 200 meters northeast of the cowshed factory.
The lot, located at 2780 Sanzai Matsumoto City, Nagano pref., measured approximately 600 square meters. Construction began promptly, and by May of that year, a new two-story wooden building was completed, offering around 400 square meters of total floor space. The total investment came to 2.2 million yen.

This photo was taken in Yokouchi family’s new year meeting in January 1961. Cowshed factory’s space was too small, so Yuichiro use his home as an assembly factory. These guitars were delivered to domestic market from his house. Caption was Yuichiro’s hand writing: "My house is guitar factory"

Business performance continued to improve. By then, the FUJIGEN was producing 30 classical guitars a day, each priced at 1,200 yen. Though the woodworking still had some flaws, these were effectively masked by the exceptional finishing and painting skills of craftsmen Kimio Takahashi and Tomohisa Yamazaki. The previous financial deficit was wiped out, and FUJIGEN posted its first annual profit.

However, in May, factory manager Masatoshi Yokoyama resigned due to the technical responsibilities he could no longer bear. In June, Tadashi Maruyama joined the company from Izumi Seiki, taking over as both director and factory manager.
Orders continued to flood in from major cities like Tokyo and Osaka, with wholesalers demanding more products daily. Yuichiro Yokouchi personally led morning assemblies, gave instructions to workers, and managed production. He also handled procurement trips, purchased parts, managed accounting, and negotiated with banks—all while the employee count reached approximately 30.

The Road to Export

FUJIGEN Gakki was making significant progress in guitar design, and their craftsmanship had improved to the point where other manufacturers began coming to learn from them. Although production ramped up dramatically—reaching a monthly output of 3,000 guitars—the business wasn’t as profitable as it might have seemed. FUJIGEN was facing the typical challenges of a growing operation: wholesalers often paid with 90- or even 120-day promissory notes. As a result, Yuichiro began considering the possibility of exporting guitars to the United States and started exploring potential export partnerships.

Then, one day, Anthony George, a musical instrument dealer from Los Angeles who was staying at a hotel in Tokyo, visited the factory. He ended up staying in a nearby apartment for about three months, during which he taught the team how to build guitars tailored to the U.S. market.
Thanks to George’s guidance, FUJIGEN refined its craftsmanship and adapted its guitars to suit American preferences. Once Anthony returned to the U.S., export business began, while domestic sales remained strong as well.
During a trip to Tokyo, Yuichiro came across an American-made electric guitar in a music store for the first time. It was the dawn of the electric guitar boom, as they were gaining popularity in the United States. Yuichiro felt a new sense of excitement. 
​Soon after, Anthony George returned and suggested that FUJIGEN Gakki begin producing electric guitars. He even placed an initial order for 1,000 units. Additionally, FUJIGEN also secured orders for the electric guitar model EJ and electric bass model EB from Teisco in Tokyo. 

Yuichiro and his first electric bass guitar

Factory Manager Tomohisa Yamazaki and Anthony George

The problem was that they knew nothing about electronics, so Yokouchi sought help from Matsumoto Technical High School. Two teachers, Mr. Ikoma and Mr. Nakazawa, provided nightly lessons, often staying until 10 p.m. With their help, and through many trials and errors, FUJIGEN Gakki developed a prototype by September 1961.
The sound was unlike anything they had made before, marking the beginning of a new era. Anthony George approved the model, and by November, representatives from the New York-based distributor B&J visited the factory. After a successful inspection, FUJIGEN officially began mass production of electric guitars.
In January 1962, FUJIGEN received another order from Anthony George, and the workforce was doubled. The atmosphere inside the factory was filled with energy and optimism. The team’s excitement was palpable as they worked on guitars designed for the American market. Yuichiro later described this period as the Genesis Era of their electric guitars.

Toshizumi Tezuka

The first electric guitar pickups for FUJIGEN were developed by Toshizumi Tezuka, an electrician who frequently visited the Yokouchi family home for electrical work. These pickups became known in overseas specialty magazines as the Tezuka-FujiGen Pickups. Initially, Tezuka wound the coils by hand, but he soon realized the process was too time-consuming. To speed things up, he modified a washing machine motor to build a winding machine, though he was still only able to produce about 20 to 30 pickups a day. The work became increasingly demanding—he often worked until 2 AM each night. After a year, Tezuka decided to stop making pickups, though FUJIGEN continued to consult him on the electronic components of their electric guitars.

After Tezuka stopped making pickups, production was outsourced to a company called Komatsu. This was later followed by a shift to Nisshin Onpa, and ultimately, pickup production was brought in-house at FUJIGEN.

Matsumoku Industrial

In 1962, that enthusiasm was abruptly halted by a major setback. Cracks began appearing in the painted guitar bodies during the final assembly. The cause was clear: the raw wood hadn’t been properly dried. Nearly 2,000 units had to be discarded, and all other materials made from the same untreated wood were also deemed unusable.  

Determined to resolve the problem, Yuichiro visited Matsumoku Industrial—he knew Executive Director Kuniichiro Momose. He asked how they could properly dry the guitar bodies and necks. There, he learned that only Matsumoku had the facilities required for such advanced wood drying.
Matsumoku's parent company was the American firm Singer Sewing Machines, and their main product at the time was wooden cabinets for Singer. Through this connection, they adopted advanced American-style machinery. Their drying system was fully automated and programmable, capable of drying the wood to perfection.

Matsumoku plant

Yuichiro immediately asked if FUJIGEN could outsource this part of the process to Matsumoku. Coincidentally, Matsumoku was also going through a difficult period, as Singer had begun outsourcing cabinet production to a factory in the Philippines to cut costs. As a result, the two companies struck a deal: Matsumoku would process and finish the guitar bodies and necks, then supply them to FUJIGEN. For Yuichiro, having such a prestigious company handle FUJIGEN’s work felt like a dream come true.
​This partnership allowed FUJIGEN Gakki to scale up production significantly, leading to a sharp increase in orders.

That same year, FUJIGEN received an order from Teisco, but after the shipment, the instruments were found to have technical defects. As a result, factory manager Tadashi Maruyama was sent to Tokyo for technical training. However, upon his return, he struck a private deal with Teisco’s president, recruiting ten of FUJIGEN’s senior employees to establish Teisco Stringed Instruments Co., Ltd. in the suburbs of Matsumoto City.
The betrayal by someone Yuichiro had considered a trusted friend was deeply painful. President Mimura was furious. Even so, the incident pushed the company to fully commit to electric guitar manufacturing.

To secure international sales, Yuichiro Yokouchi took FUJIGEN’s electric guitars to Nanyo Boeki in Nagoya, hoping to establish a connection with the American distributor B&J. He also pursued export partnerships through other trading companies, but the company went an entire month without a single sale, which led to a severe cash flow crisis.
The situation was saved by a crucial loan approved by Mr. Kubomura, the head of the Hachijuni Bank’s Fukashi Branch. Additional support came from senior staff at Matsumoku Industrial, particularly Mr. Tsukada and Mr. Hayakawa. Yuichiro never forgot the generosity of those who helped the company during its most difficult times.
In July, Anthony George made his third visit to Japan and delivered technical training on electric guitar production at Matsumoku, which significantly improved the quality of FUJIGEN’s instruments.
Nevertheless, orders were inconsistent. To stabilize operations, FUJIGEN maintained its focus on producing both electric and classical guitars. 

Focus on Exports

By August 1962, it was decided that Kanda Shokai, Kyowa Shokai, and Nakai Gakki would begin distributing FUJIGEN’s electric guitars in the domestic market.
Unfortunately, despite the government’s income-doubling policy, FUJIGEN kept facing difficulties with delayed payments. Terms were frequently stretched to 120 or even 140 days. In particular, wholesalers in the Kansai region acted as if they were doing the company a favor by purchasing its products.
Frustrated by these domestic hurdles, Yuichiro pushed the company to prioritize exports—especially to the United States—where payments were more timely and dependable. “If we keep relying on domestic dealers, things will never change. Let’s focus on exports, where we can recover cash directly,” Yuichiro said to Yutaka Mimura. He agreed completely. The future of the business lay in America. It was a common opinion. But to move forward, they needed to see the situation firsthand. They could no longer rely solely on trading companies.

It was decided that President Mimura would personally travel to America to explore the market—a daunting and costly undertaking for a small, rural company. On October 1st, 1963, Yutaka Mimura set sail from Yokohama, eventually reaching Los Angeles, New York, and Canada. He thoroughly researched the trends and future prospects of the American guitar market and returned feeling confident and optimistic. His trip confirmed the need for direct trade, strategic partnerships, and larger orders. It marked a moment of hope and celebration—the beginning of FUJIGEN’s serious emergence on the global stage.
In early 1964, orders from the United States began to arrive. As Japan’s exports to the U.S. grew—especially with the optimistic atmosphere surrounding the Tokyo Olympics--FUJIGEN Gakki was swept up in this wave of opportunity.

Although the company had shifted to direct international trade, navigating the complexities of global business remained challenging. To fully understand the export process, Yuichiro Yokouchi, along with the company president and accounting manager, underwent intensive training with a trading company employee in Tokyo.

​Electric guitars, produced under strict quality control, began shipping out consistently. By spring, orders were arriving rapidly—sometimes for 500 or even 1,000 guitars at a time. Meanwhile, Japan was experiencing rapid economic growth, and Western rock music—especially Elvis Presley—was becoming increasingly popular among Japanese youth. More young people were picking up instruments, and the guitar—along with the harmonica—was particularly accessible and appealing.
FUJIGEN was full of energy, with new young employees joining regularly.

Morning gathering, ca. 1962

​Yuichiro Yokouchi personally encouraged them, expressing his hope that their collective efforts would make FUJIGEN a globally recognized guitar maker: “Let’s work hard and create excellent instruments. With everyone’s effort, we can become a guitar company known around the world.”

A Journey to America

Recognizing the importance of understanding the American market, President Mimura proposed that Yuichiro Yokouchi travel to the United States—particularly New York—to study it firsthand and build new business relationships. It was a crucial step in FUJIGEN’s expansion.
In May 1964, Yuichiro Yokouchi embarked on his first trip to the United States. Assigned to stay for six months, he faced the daunting task with no knowledge of English and no experience in international negotiations—driven only by FUJIGEN Gakki’s growing ambition to pursue direct trade.

His mission was clear: strengthen direct trade and build meaningful relationships with American companies that understood the evolving music market. Direct trade offered not only better profit margins by cutting out intermediaries but also the invaluable ability to hear buyers’ needs firsthand.
The pressure was immense—and he would face the challenge alone.
On May 10th, 1964, Yuichiro Yokouchi departed from Matsumoto, carrying eight guitars and just $500—limited by Japan’s strict travel restrictions. Around sixty employees gathered at the train station to see him off. Overcome with anxiety and sadness, he left Japan with a heavy heart, determined to spend up to a year in the United States on behalf of FUJIGEN Gakki.

Upon arriving in Los Angeles, Yuichiro met Anthony George, who reaffirmed his belief in Yokouchi’s potential and assured him that the American market remained open and full of promise. His encouragement gave Yokouchi renewed confidence. The next day, George saw him off at the airport for his next destination: New York.
Upon arriving in New York City, Yuichiro was overwhelmed by the sheer scale, noise, and unfamiliarity of his surroundings. The city he had once imagined in romantic terms now felt grim and intimidating under the harsh daylight. Navigating Manhattan proved especially difficult for a Japanese man with limited English skills. Surrounded by people yet unable to communicate, he felt like a stranger in a foreign land. Despite his efforts to attend business meetings and improve his English, the language remained a major barrier.
Financial stress compounded his anxiety, as he quickly realized how rapidly his limited funds were dwindling. Yet despite these early hardships, he reminded himself of his mission: he hadn’t come to America to dwell on discomfort but to sell guitars and help his company grow. The path ahead was daunting—but he remained determined to persevere.
Armed with a list of wholesalers from JETRO (Japan External Trade Organization), he began promoting his guitars. However, cultural differences and language barriers made his efforts difficult and disheartening. Most companies refused to meet without prior appointments, and the few phone calls he managed to make ended in rejection. Some wholesalers were already out of business, and the U.S. musical instrument market was in disarray.

Physically and emotionally exhausted, Yuichiro returned home one day to find a letter from President Mimura. In the letter, Mimura criticized the attitude of Yokouchi’s family—specifically his mother, who had expressed concern and distrust about the company’s financial health. For Mimura, a company’s management required the full support of its family members. He interpreted this as a sign of a lack of backing from Yuichiro’s family and concluded that, because of it, Yuichiro was unfit to be an executive.
The letter was emotional, and Yuichiro felt both betrayed and deeply angered. Despite being a co-founder, he couldn’t bear the thought of continuing to work under such a boss. Without hesitation, he wrote his resignation letter and sent it off. He also informed the other executives that he could no longer follow Mimura and would be leaving the company.
Airmail correspondence continued for about a month. Yuichiro was no longer focused on work—completely worn out, he lost his appetite, and his body grew increasingly weak. To make matters worse, he came down with a fever caused by tonsillitis and spent a week bedridden.
Then came a letter from company president Mimura. Enclosed was Yuichiro’s returned resignation and a heartfelt apology: 

“Please withdraw your resignation. Without you, Mr. Yokouchi, our company will collapse. Please don’t do anything drastic. I spoke out of turn. I take back what I said—please forgive me.” 

As a postscript, the board of directors had reprimanded President Mimura over Yuichiro’s resignation: ​

“How could you treat someone like that when he’s working so hard on his own over there? Without Executive Vice President Yokouchi, this company has no future.”

Despite the apology, Yuichiro was still struggling. He couldn’t seem to find his footing—language barriers left him ignored and dismissed by potential business partners, and he was starting to feel like a failure. The emotional burden was made heavier by the fear of disappointing his family. As the summer heat intensified, Yuichiro felt physically drained, with his hands aching from carrying his guitar samples across the city.

The Turning Point: A Stranger’s Help

After another failed day of business, Yuichiro sat on a bench in Central Park, overwhelmed by his setbacks. He longed for his past life on the farm in Japan and questioned why he had ever left it behind. Lost in despair, he began to cry, feeling completely defeated.
A kind, elderly man approached and, noticing his distress, asked why he was crying. Yuichiro shared his struggles with English and his failure to sell guitars, explaining that the language barrier was his greatest obstacle.
To his surprise, the man understood him perfectly and assured him that he could speak English well enough. He then invited Yuichiro to his home in Queens, offering to teach him conversational English.
Yuichiro accepted, and the elderly man, Harry, along with his wife, welcomed him warmly. They treated him like family, and their home became a refuge. The following days were filled with intensive English lessons, during which Harry and his wife patiently corrected Yuichiro’s mistakes, encouraging him to speak naturally and conversationally.
As his English improved, Yuichiro began to feel more confident and capable. After ten days of rigorous training, he felt ready to face the world again.

While in his New York apartment, Yuichiro noticed two large phone books beside his bed. Flipping through the Yellow Pages, he found a listing of musical instrument wholesalers—a simple yet powerful revelation that felt like his personal “Columbus’ egg” moment. Though still daunted by the idea of doing business alone in a foreign country, he carefully scripted his message in a notebook and began making calls. Eventually, he secured his first major meeting—with the president of Sorkin Musical Company. At the meeting, he presented one of his guitars and successfully negotiated a deal for 300 units, valued at $7,500.
That first success boosted his confidence and opened the floodgates. Orders soon followed from other companies like B&J, US Music, Goya, Ideal, AA, and Manhattan Novelty. Excited, he contacted Japan to share the good news, imagining the joy it would bring back home.
After wrapping up business in New York, Yokouchi extended his trip to other cities—Boston, Philadelphia, Washington, Cleveland, and finally Chicago—where his success reached its peak.
At the time, the electric guitar market was booming, driven by the explosive popularity of The Beatles and The Ventures. American retailers, eager to reduce costs, began exploring direct imports from manufacturers instead of relying on trading companies. Amid this shift, Yokouchi’s determination led to remarkable success.
However, the surge in orders quickly outpaced FUJIGEN’s production capacity, resulting in complaints from buyers—including threats to cancel orders due to delays.

Direct Deals with the U.S.

By the end of October, FUJIGEN Gakki's president called him back to Japan, as their manufacturing could no longer keep up with the demand. Still, Yokouchi had become more convinced than ever that electric guitars had a bright future in global markets. Six months after his arrival, with a full heart and a string of victories behind him, he returned to Japan.
Before Yokouchi’s trip to the U.S., monthly sales had reached 8 million yen. After his journey, they soared to 24 million yen and then doubled again to 36 million yen. Electric guitars proved to be the most profitable and scalable product, and FUJIGEN expanded to a team of 60 dedicated workers.​

At that time, the electric guitar boom was in full swing in Japan as well. Domestic manufacturers quickly shifted their focus to electric guitars, but the market was still dominated by major players like Guyatone, Tesko, Kawai, and FUJIGEN Gakki, who had pioneered the field. FUJIGEN’s collaboration with Matsumoku—combining Matsumoku’s high-quality bodies with FUJIGEN’s precise assembly—was highly praised, although soaring demand often led to delivery delays.
Eventually, FUJIGEN established business relationships with over forty companies, most of which required FUJIGEN to manufacture guitars bearing the clients' own brand names, as specified.

Yuichiro concluded that it was a good opportunity to sever ties with Japanese trading companies and establish direct dealings with U.S. firms—an idea fully supported by Mimura. This decision wasn’t about eliminating the middleman’s profits, but about building strong relationships with specialized partners to ensure the continued success of FUJIGEN’s business.
To strengthen their export operations, FUJIGEN hired Kobayashi Yasumasa and established a dedicated export department, eventually sending Kobayashi to Los Angeles as their first overseas representative. By April, a research division was also formed to support product development and improve quality.

Hirata Factory

In June 1965, after a shareholders’ meeting, Matsumoku Industries began restricting the supply of electric guitar bodies. They also raised the unit price. Caught up in the booming demand for electric guitars, Matsumoku could no longer remain a subcontractor for FUJIGEN Gakki. Instead, they began producing finished instruments under their Victor and Columbia brands.
As a result, the delivery of bodies and necks from Matsumoku started to decrease. What had been 5,000 units per month was reduced to 4,000, and then to 3,000. 

In September, FUJIGEN began sourcing necks from Iguchi Woodworking. However, this situation was becoming unsustainable.
Having relied solely on Matsumoku until then, this situation was dangerous for FUJIGEN. Despite holding a large number of orders, they were unable to fulfill deliveries. This wasn’t just about decreased sales--it threatened FUJIGEN’s credibility.
Relying on Matsumoku would only lead to a slow decline. To break free from this, Mimura and Yokouchi knew they had to produce everything in-house. While there were significant technical challenges, they decided to switch from outsourcing to self-production. 

However, this was impossible with the current factory size. After continued discussions among the board members, President Mimura decided to build a new factory.
This marked the beginning of their preparations to withdraw from Matsumoku.
Mimura and Yokouchi secured an approximately 6,930 m² plot in 793-2 Hirata, Yoshikawa, along the Tagawa River. The acquisition wasn’t easy; access from the national highway was narrow, and securing the entrance required difficult negotiations with surrounding landowners.
Construction of the new factory began in February 1966 with a simple ceremony in a snowy rice field. 

Along the road to the Hirata factory stood this world-famous sign, recognized across the globe

The building was approximately 1,650 m², structured like a school gymnasium, and divided into business departments as envisioned by President Mimura. The new factory was completed by the end of July, and on August 7th, FUJIGEN officially started operations in the new factory. The shift to in-house production marked the end of their reliance on Matsumoku.

Research and development room. Work at the new factory

The new Hirata factory office. In the front is current Managing Director Kamijo

Although the transition was challenging—meeting production demands proved difficult—they persevered. That year’s results were strong: sales reached 440 million yen, with 46 million yen in profit and a shareholder dividend of 18%. FUJIGEN’s rapid growth and prudent management caught the attention of both banks and competitors, cementing its rising status in the industry.

Greco

Although FUJIGEN Gakki already had its own brand, Demian, at the time, it was common practice to export instruments under the brand names of wholesalers.
Around 1966, FUJIGEN received an order from Goya for the Greco 912. However, due to a technical flaw, a minor crack appeared at the ear joint of the guitar’s headstock. As a result, several hundred completed units were rejected and remained in inventory.

Fearing a serious cash flow crisis, Yuichiro turned to one of his domestic business partners—Kanda Shokai—and asked them to take on the excess stock. The guitars sold out immediately. More than that, they even received backorders.
At that point, without obtaining permission from Goya, FUJIGEN Gakki registered Greco as a domestic trademark and began using it as their own brand. Shortly afterward, Kanda Shokai placed an advertisement for Greco in Music Trade magazine. This caught the attention of Goya—the rightful owner of the Greco brand in the U.S.—alerting them to the sales happening in Japan.
During a business trip to New York, Yuichiro was confronted by a Goya executive. Thinking on his feet, he pulled a $100 bill from his pocket and discreetly slipped it into the executive’s sleeve. The executive responded with a knowing wink, and the matter was quietly laid to rest. No formal contracts regarding brand rights in Japan were ever drawn up, and Greco effectively became a FUJIGEN Gakki brand.

The Greco 912 was the earliest model that launched the brand in Japan

From Boom to Bust

At the end of December 1966, the U.S. government announced a sharp increase in import tariffs on guitars, raising the rate from 17% to 34%. This sparked a flurry of last-minute orders as buyers rushed to import instruments before the new tariffs took effect. FUJIGEN was inundated with phone calls and telegrams, struggling to keep up as production delays made it nearly impossible to meet the sudden surge in demand.
It was the height of Japan’s electric guitar boom—intense and dazzling, but short-lived, like a firework. The rapid growth proved unsustainable. Almost overnight, export orders collapsed, and the market fell silent. What followed was a wave of bankruptcies and business closures, plunging the industry into a deep downturn.

In response, FUJIGEN began to diversify. In December 1966, Toshihira Takashima joined the company and played a key role in establishing an electronic instruments division. The team soon began developing rhythm boxes and electronic organs. They also brought on Kazuo Aoki, a recent graduate from Shinshu University, who contributed to creating fuzz pedals and other innovative products.

Under President Mimura’s leadership, FUJIGEN had already implemented cost-cutting measures to remain competitive. Facing pressure from both domestic and international rivals, FUJIGEN set out to do what no other company could easily replicate: produce high-quality instruments at prices close to their production cost.
Mimura personally oversaw the cost-reduction efforts, carefully scrutinizing every detail of production—even down to individual screws. The process demanded tireless effort and discipline. Within a few months, the cost of raw materials, which had previously accounted for 70% of a guitar’s factory price, was reduced to just 55%. This crucial achievement came just in time to counter the downturn, serving as a testament to Mimura’s sharp foresight.
By June 1967, annual sales had reached 390 million yen, but profits were only 11 million yen, and the shareholder dividend had dropped to 12%.
To address this, a goal was set to reduce raw material costs and boost internal productivity. As executive director, Yuichiro Yokouchi was tasked with leading this initiative. He introduced a conveyor belt system to streamline production and enhance efficiency, along with investments in modern equipment, including a drying kiln for guitar wood and upgraded production systems for the neck, sanding, and finishing departments.

While adopting the conveyor belt system significantly improved efficiency, it also required a corresponding increase in manpower. As a result, the company decided to hire more part-time workers. By August, FUJIGEN employed 110 full-time workers and 50 part-time workers. Though the workforce had grown in numbers, productivity improved substantially compared to the previous system.
Further productivity improvements were driven by Masatoshi Takizawa's efforts in rationalizing the production processes.

In October 1967, FUJIGEN opened a representative office in New York—on 32nd Street, near Fifth Avenue—to boost orders, which had begun to decline. Tadayuki Kuwata was appointed as the resident representative to help expand direct sales. By the end of the year, the company had established approximately 40 new business connections in the U.S., and sales rebounded. Domestic demand was also strong, with Kanda Shokai purchasing products worth 10 million yen in December.
Production and shipments of electric guitars increased from 5,000 to 6,000 units per month.
By late November, the once-overheated guitar market had begun to stabilize, and FUJIGEN emerged as a leading force in the industry.
In May 1968, the bankruptcy of two major industry players, Teisco Gakki and Guyatone, sent shockwaves through the electric guitar market, and FUJIGEN soon felt the ripple effects. To secure future growth, the company diversified into wooden products such as beds, jukeboxes, and other items for export to the U.S. However, these ventures ultimately proved unsuccessful.

In 1969, Fuji Gakki continued to face severe financial difficulties, with mounting losses and a lack of orders for electric guitars amid a market downturn. The threat of bankruptcy loomed ever larger. In a desperate attempt to find a solution, President Mimura traveled to the United States, but his efforts yielded no results.
At the time, folk guitars were in demand, so FUJIGEN shifted its focus to that segment. However, the company’s strong identity as an electric guitar manufacturer made it difficult to gain acceptance in the folk market. Additionally, fierce competition from established brands made capturing market share even more challenging.

Yuichiro Yokouchi President

As the company’s financial situation worsened—burdened with over 40 million yen in debt—President Mimura’s health deteriorated, and he stepped down in December. On December 9, 1969, during an extraordinary shareholders' meeting, Yokouchi was appointed as the new president of FUJIGEN Gakki. A farewell party for President Mimura was held on December 22, where employees expressed their gratitude for his ten years of leadership.
The leadership change brought a renewed sense of hope, and a loan was secured to help stabilize the company’s finances. A subsequent capital increase further boosted confidence in FUJIGEN Gakki’s future

With two female office workers in the second floor office of the factory

However, Yuichiro soon realized that the company needed more than just financial stability—it needed a shared vision and a guiding philosophy to unite everyone within the organization. He unveiled an ambitious plan to eliminate the deficit within one year, presenting three key goals to all employees:

1. Global Value Creation: FUJIGEN Gakki strives to produce instruments of global value, aiming for international recognition and lasting impact.
2. Improving Quality of Life: FUJIGEN Gakki is committed to enhancing people’s lives by fostering continuous growth and development within the company.
3. Social Contribution: FUJIGEN Gakki aims to establish itself as a meaningful and positive force in society and the nation, making a valuable contribution through its work and products.

FUJIGEN Goals was often featured in the company newsletter

Thanks to Yuichiro, FUJIGEN Gakki adopted a people-centered approach, emphasizing the development of both products and employees. He believed that employees should be seen as the lifeblood of the company, not mere tools for profit.
One of his first actions was to improve the cleanliness and orderliness of the factory. According to Yuichiro, a cluttered workspace hindered productivity and employee performance.
He believed that by focusing on employee growth, true quality products would emerge. Additionally, he prioritized creating a work environment that fostered both personal and professional development. The introduction of a committee system for internal operations and the formation of the Shinwakai social group helped strengthen company culture and morale.

Yuichiro decided that FUJIGEN would focus exclusively on manufacturing musical instruments, particularly guitars. He believed that by producing “the world’s best guitars” and emphasizing high-value production, the company could justify higher prices.
To prioritize quality over quantity, Yuichiro reorganized the sales strategy, discontinuing direct trade and focusing on higher-end orders. FUJIGEN’s production primarily centered on Hoshino Gakki’s original brand, Ibanez, for export, and FUJIGEN’s own brand, Greco, for the domestic market, with distribution handled by Kanda Shokai.
Selling under their own brand meant FUJIGEN took full responsibility for the product. They also introduced a guarantee card to ensure repairs or replacements if any issues arose. To be the best, they had to create products worthy of that commitment.
Research activities and production efficiency improved, and by September 1970, FUJIGEN had turned a profit of four million yen, marking a significant turnaround.

Rising from the Ashes

On April 6, 1971, a devastating fire broke out in the painting area of the FUJIGEN Gakki’s Tsukama factory, destroying half of the facility, which was filled with flammable materials. Yuichiro Yokouchi took full responsibility for the incident and addressed the employees, offering comfort and showing a strong will to rebuild. In May, FUJIGEN began reconstruction efforts, including the construction of a new timber warehouse and welfare facilities. An insurance payout of 25 million yen helped finance the rebuilding, while production losses were limited to just 10%. By the end of the fiscal year, FUJIGEN reported an operating profit of 36 million yen, effectively eliminating previous deficits.

Hirata's electric guitar factory

Hirata Factory. Painting site

In 1972, FUJIGEN Gakki celebrated its 12th anniversary with the completion of a new factory. A grand ceremony was held on June 18, 1972, attended by 240 people, during which Yuichiro Yokouchi addressed the employees, recognizing their achievements and awarding those who had made significant contributions to the company. In a newsletter article titled Reflections on the 12th Anniversary, he reflected on the FUJIGEN’s journey from debt to success, emphasizing that it was not just about money, but about the power of people. He attributed FUJIGEN's remarkable recovery and progress to the collective efforts of the employees, who were motivated by a sense of pride and ownership in the company.

Celebration for the 12th anniversary

Awards and commemorative gifts are presented to those who have made distinguished contributions. Note the old FUJIGEN logo on the flag.

Greco Project Series

Innovation played a key role in FUJIGEN’s growth strategy. The company introduced a made-to-order system in late 1972, allowing customers to commission custom instruments—a pioneering move in the Japanese market. This was many years before Fender and Gibson established their Custom Shops.
In January 1973, FUJIGEN, in collaboration with Kanda Shokai, launched the Greco Project Team, a team focused on new product development by both Kanda Shokai and FUJIGEN staff. The Greco Project Series guitars were limited to select models that were crafted to a higher standard than the regular catalog offerings and could also be customized. Initially, these instruments weren’t listed in any official catalog, but they were later introduced as Project Series models positioned above the standard product line.
​The launch of the Project Series marked a clear shift away from producing low-cost imitations of other brands, toward offering premium models that leveraged the growing reputation of the Greco name. While these guitars were still heavily inspired by designs from other manufacturers, they were crafted to surpass the quality of the originals available at the time.

“In guitar manufacturing, studying the products of domestic and international competitors is essential. When working on copy models, we thoroughly analyzed the design logic behind the originals. At FUJIGEN, we purchased vintage Gibson and Fender guitars—which weren’t inexpensive even at the time—disassembled them, stripped away the finish, and meticulously examined everything, from the structure to individual components like bridge and pickup placement. We measured, calculated, and scrutinized every detail to uncover the reasoning behind their design. Up until the 1980s, we didn’t even have NC (Numerical Control) machines, so we had to rely on our hands to recreate what we had studied. Even before the introduction of NC machines, we were able to achieve remarkable precision through manual craftsmanship. The vintage Fender Stratocaster that inspired the Greco Super Real Series SE1200 is still preserved at FUJIGEN today. We disassembled it countless times, and the body shows numerous dents and dings—evidence of the extensive testing we conducted using the only analyzer we had at the time to study its acoustic characteristics. Even when we built guitars that way, a fair amount of guesswork was involved. The instruments we measured were already finished products. Since the wood is shaved, polished, and painted after the machining process, the original shape is altered. Copies were made by taking molds from these altered forms. So, we consulted documentation to find original specifications, compared them with our measurements, and used that to infer the pre-finish dimensions and create accurate design blueprints.”


                                                                                            Makoto Sugimoto

1980 Greco Super Real Series catalog

1980 Greco Super Real Series catalog

Resilience and Renewal

At the same time, a vibrant internal culture began to flourish, with employees forming various hobby clubs, including those dedicated to traditional arts such as ikebana and shigin. This strengthened the sense of unity and morale within the organization.
Despite the economic instability caused by yen revaluation, inflation, and the oil crisis, FUJIGEN’s orders continued to exceed production capacity, thanks in part to proactive material procurement. Strategic foresight in securing raw materials in advance allowed the company to avoid major production disruptions, even as shortages and price hikes swept across the industry.
Sales, initially export-heavy, began to balance between domestic and international markets. The company focused on strengthening its domestic presence, capturing a dominant share of Japan’s electric guitar market, and enhancing its brand image.
At the beginning of FUJIGEN’s 49th year, Yuichiro Yokouchi shared a heartfelt message in the company’s internal publication, Guitar Friends, reflecting on the profound anxiety caused by the global oil crisis of late 1973.
“The oil crisis,” he wrote, “has shaken the hearts of people around the world. It has entered our lives relentlessly, bringing serious anxiety to those of us who had grown accustomed to peace.” Yuichiro observed that this anxiety was contagious—feeding upon itself, spreading uncertainty throughout society. Fear of shortages led to hoarding, arguments, and a surge in selfish behavior, escalating social unrest.
He argued that the root of this disorder was the frustration of unmet desires and that the cure was something universally understood but often overlooked: “the peace of mind.” True stability, he believed, would return when individuals rediscovered satisfaction in their lives—whether through wealth, family, homeownership, or education for their children.
For Yuichiro, peace of mind was not an abstract idea. It was something tangible, found in daily work. “In the evening,” he wrote, “after sending off a truck full of guitars from Shinshu Meitetsu, I felt a deep peace. These guitars were made with sincere effort by each employee. I found endless reassurance in these products.”
He emphasized that receiving peace of mind from others—employees, suppliers, subcontractors, and retailers—came with a responsibility: the duty to give it back. To build a truly stable and happy company, the president must first offer that peace of mind to his employees. Even in the face of material shortages, inflation, or industry downturns, Yuichiro believed that FUJIGEN, built on mutual trust and support, would not only endure but thrive.

In 1974, FUJIGEN launched a pioneering overseas training program, sending not only executives but also technical workers to the United States to gain firsthand experience, training, and skills by working with U.S. companies connected to their industry. Beginning in April, Chief Employee Makoto Sugihara was sent for six months to Elger Company, which was established by Hoshino Gakki following the acquisition of a local agency. The program quickly expanded to include a wide range of workers, from painters to machine operators. Typically lasting between eight months and a year, the program eventually saw over 30 employees participate.
Yuichiro took profound satisfaction in witnessing the transformation of his employees. Workers who had once left for America with anxious faces returned a year later, energized, dignified, and full of confidence. “More than any financial success,” he reflected, “this was my greatest joy as president.”

By the mid-1970s, FUJIGEN had become the third-largest electric guitar manufacturer, following Gibson and Fender. Many leading international musicians played Ibanez guitars, while Greco guitars, which held a 65% market share in Japan, were favored by Japanese rock bands.

In 1979, FUJIGEN​ Gakki faced significant challenges due to the strong yen, which impacted both exports and production. The yen's effect on the U.S. export market prompted the company to shift its focus toward Europe, where the yen's influence was less severe.

Despite these efforts, the strong yen continued to affect the company's performance, with a 23% drop in orders in April compared to the same month the previous year—falling from 8,800 units to 6,600.
By the end of October, Kanda Shokai’s stockpile of Greco guitars had doubled to 14,000 units. In response, FUJIGEN reduced production by 30% and, under the direct leadership of Executive Director Kamijo, worked on strengthening relationships with retail stores.

Yokouchi and Managing Director Kamijo

The company also faced financial hardship and layoffs as a result of the yen's economic impact. In response, employees were encouraged to become independent contractors through partnerships with subcontracting companies.

In response to these difficulties, FUJIGEN Gakki introduced a new company philosophy in November, emphasizing growth, technical excellence, customer satisfaction, responsibility, gratitude, and solidarity. This renewed vision, guided by clearly defined goals, became a cornerstone of the company’s identity. It unified the workforce and reinforced their determination to overcome the economic challenges ahead.
Unfortunately, despite their best efforts, production fell by 40%, and unit prices dropped by 20%, leaving the market in a severe slump.
However, in their pursuit of new markets, FUJIGEN successfully introduced the Ibanez Blazer Series, a line of low-priced guitars for export, which proved a significant achievement.
​By October 1980, orders for FUJIGEN Gakki's export guitars began to stabilize, largely due to the growing reputation of the Ibanez brand. By November, the outlook for second-half orders had become clearer, prompting the company to shift its focus toward the electronics division. They had already begun assembling organs for Roland, and operations in this area were progressing smoothly.

However, the recession in the guitar industry, coupled with declining purchasing power, a shrinking population of musicians, and intense competition from Korean and Taiwanese manufacturers, made a quick economic recovery unlikely. In June 1981, to improve quality, reduce costs, and thereby increase orders from Europe and the U.S., FUJIGEN began planning the introduction of NC routers. By the beginning of 1982, they had invested 150 million yen in NC machinery, high-precision tools, and even smaller machines to boost production capacity.

By August 1981, the factory was restructured into four departments:

1. First Production Division (set-neck)
2. Second Production Division (detachable neck)
3. Third Production Division (Western guitars)
4. Fourth Production Division (pickups)

This division made it possible to clearly calculate profits and losses in each area. They discovered that Western guitars were running a significant deficit—4 million yen per month—and decided to stop producing them. Meanwhile, the Fourth Division had successfully internalized pickup production, which had previously been outsourced to Nisshin Onpa.

The Fender Deal

In October 1981, at the Tokyo Music Fair, Yuichiro had the chance to speak directly with a representative from Fender. Shortly afterward, Fender’s Vice President, Roger Balmer, and a factory engineer visited FUJIGEN for a tour, accompanied by Koji Kojima, the President of Kanda Shokai, who had been considering a collaboration with Fender as a way to respond to the rapidly changing market.
Although Kanda Shokai had already been leaning toward Tokai Gakki, Kojima’s determination was extraordinary. After the factory tour, during the car ride back, Roger Balmer expressed interest in working with FUJIGEN. Sitting next to Yuichiro, Kojima kept urging him, “Say OK, say OK.” But Yuichiro didn’t give an immediate answer. He replied, “Let me think about it.”

Left to right: Masamitsu Yamano, Bill Schultz, Chitoshi Kojima (Kanda Shokai) and Roger Balmer

By March, the negotiations were reaching their final stages—and word of it began to spread. Not only local newspapers but also the national dailies covered the story widely. The Nikkan Kogyo Shimbun reported:

“Fuji Gakki, the electric guitar manufacturer (President Yuichiro Yokouchi), has entered into a business partnership with CBS Fender in the United States (President Bill Schultz). Starting in April, Fuji Gakki will begin domestic production of Fender’s electric guitars. This partnership arose as Fender transitioned from exporting finished products to Japan to outsourcing production to Japanese guitar manufacturers. By teaming up with Fender, a competing manufacturer, Fuji Gakki can establish a stable mass production system and take advantage of the benefits of automation and robotics, which led to the decision to form this partnership.”

Contract manufacturing for Fender was scheduled to begin in April. This marked the first time Fender’s electric guitars had been produced by another manufacturer, making Fuji Gakki the first to do so.
On March 12, Fender’s President Bill Schultz visited FUJIGEN Gakki. He and Yuichiro Yokouchi posed with several guitars under the flash of cameras, multiple times.
Finally, in April, the contract was signed. The joint venture Fender Japan was established in Tokyo by Kanda Shokai and Yamano Music Store, both affiliated with FUJIGEN Gakki, along with CBS Musical Instruments USA. The headquarters were located in Tokyo’s Kanda district.
At the same time, Hoshino Gakki Sales was established, signaling the company’s serious entry into the Ibanez market in Japan. This development marked the beginning of a new era of competition in the Japanese guitar industry.

The birth of Fender Japan was the result of the bold decision made by President Koji Kojima of Kanda Shokai.
When Koji Kojima and Takahiro Saito—a former country singer also known as “Johnny Saito” for his appearance on the Johnny Cash Show—first approached FUJIGEN with the idea of launching Fender Japan, the company initially declined the offer.
However, while Kojima and Johnny Saito were on their way by taxi to visit Matsumoku, the other potential partner for Fender, they called Yuichiro and said, “FUJIGEN has turned it down. Mr. Yokouchi, are you really okay with that?”
Yuichiro responded, “No—Fender is ours. I’ll convince the people inside the company.”
If Kojima and Saito hadn’t made that call, FUJIGEN would never have become Fender’s OEM partner.
Kojima tirelessly traveled back and forth between the United States and Japan, and his efforts from New Year’s through to April cannot be fully expressed in words. 

Takahiro Saito

FUJIGEN began manufacturing four models of Fender guitars at a rate of 4,000 units per month. Seventy percent of production was for the domestic market, while thirty percent was for export.
By April 1983, FUJIGEN’s sales were expected to reach around 3 billion yen, with a projected operating profit of 100 million yen. With a monthly production of 12,000 units, the company had become a leader both in Japan and globally.
Some people said Fender Japan guitars were just Greco under a different name. That’s not true. 

“We worked directly with Fender USA staff to fine-tune the details of the Greco products and bring them closer to the original Fender designs. For example, the contour of the Fender headstock is slightly different from Greco’s. If you compare them, you’ll see the difference. Greco’s vintage copies were close, but not quite the same. With Fender Japan, we incorporated original Fender documentation and refined the models even further.”

                                                                                                                          Makoto Sugimoto

Former FUJIGEN Managing Director, Asatomo Nakata, also known as Ace Nakata, also stated that the first Japanese Fenders were not rebranded Greco guitars:

“At the time, we made the Greco ‘Stratocaster’ called SE1200 of the Super Real series. Rumors started going around that Fender had just taken that model and swapped out the Greco logo for a Fender one. Even now, there are still people who believe that. But that’s completely wrong. It’s nothing more than a rumor. FUJIGEN is not the kind of company that would do something like that. The samples and mass production models made for Fender were entirely different from the Greco SE guitars. However, when Fender Japan was first announced, the guitars for the trade show and catalog shoot weren’t ready in time. So, out of necessity, they took a Greco SE1200, replaced the logo with a Fender one, and used that guitar for the show and the catalog photos. That story somehow got twisted and passed along incorrectly, which likely gave rise to the rumor that the early Fender Japan guitars were just rebranded Grecos.”

                                                                                               Asatomo Nakata

Makoto Sugimoto

Asatomo Nakata

The evolution of Fujigen: mechanization, innovation, and people-centric solutions

The major benefit of the partnership with Fender was not in terms of profit, but in the opportunity for FUJIGEN to fully commit to mechanization. Three state-of-the-art, computer-controlled machines were introduced, and FUJIGEN is also in the process of automating the most labor-intensive aspect: the painting process, with plans for full automation by the end of the year. Including the previous investment of 150 million yen, FUJIGEN plans to invest over 300 million yen in this rationalization effort.

NC Routers

Yuichiro initially saw mechanization simply as a way to improve efficiency—producing more guitars with the use of machines. Over time, however, he came to view it as essential for ensuring consistent quality, regardless of who was working, marking a true step toward rationalization.
The introduction of NC routers for body-making dramatically improved precision, reducing tasks that once required several workers to a highly accurate, automated process, now achieving tolerances of one-hundredth of a millimeter. Yuichiro encouraged employees to engage in computer programming, and even those who had previously been uninterested became active in software development.

As mechanization progressed, a surplus of labor remained. Yuichiro recognized the broader issue of so-called robots displacing people from the workplace. Staying true to his belief that “Fuji Gakki is all about people,” he actively sought ways to resolve the contradiction between embracing cutting-edge technology and reducing personnel.
This was the thinking behind the “outsourcing workshop community” that had gradually taken shape. On the grounds of FUJIGEN, ten small workshops were built and operated by former employees, creating a new production system. Some ran their workshops with their spouses or friends, and in some cases, current employees were temporarily assigned to support them.

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MAIN SOURCES
- Friends of Greco Revisited, by Yuichiro Yokouchi, Shoji Yokouchi, and Takahito Moroji