Fender and the Stratocaster were primed for renewal after CBS’ divestiture of the company in 1985. Led by Bill Schultz and Dan Smith, this pivotal period in Strat history was a return to Leo Fender’s core philosophies, guiding the company’s direction in the post-CBS era and positioning it for continued success well into the 21st century.

The first long-running production line of this chapter was not only a huge revitalizer and stabilizer for Fender Musical Instruments Corporation (FMIC), but it was closely based on the genius of Leo’s 1954 Stratocaster—the brand wisely looked back to the original design for contemporary inspiration. We’ll also discover how the founder’s penchant for perpetual innovation once again became a foundational principle contributing to the company’s lasting influence.

The Fender Stratocaster experienced a redoubtable resurgence beginning in 1985, and today, the iconic rock ’n’ roll guitar is as relevant as ever.

Pictured: Stratocaster Headstocks From 1985—Present

Table of Contents

Timeline of Notable Events for Post-CBS Fender
CBS Sells Fender to Bill Schultz Team
1987: A Huge Year for Fender and the Stratocaster
The Other Companies Fender Owns and How They Relate to the Strat
The Evolution of the Stratocaster From 1985 to Present Day
   Fender American Standard Stratocaster (1987—2017)
   Fender Plus Stratocaster (1987—1998)
   Fender American Deluxe Stratocaster (1998—2016)
   Fender Signature and Artist Series Stratocasters (1988—Present)
   Fender Stratocasters With Humbuckers and Floating Tremolos
   Current Fender Stratocaster Guitars
What Makes the Fender Stratocaster Legendary?

Timeline of Notable Events for Post-CBS Fender

• 1985: CBS sells Fender to a group of employees and investors, including Bill Schultz
• 1987: FMIC launches the American Standard Strat, and opens the Fender Custom Shop and a production facility in Ensenada, MX
• 1988: Eric Clapton and Yngwie Malmsteen Signature Series Stratocasters debut
• 1991: FMIC relocates corporate offices from Corona, CA, to Scottsdale, AZ
• 1996: FMIC produces up to 50,000 instruments a year and is valued at approximately $250 million
• 1998: FMIC opens a massive new facility in Corona, CA, and increases manufacturing output to 350 guitars a day
• 2002: FMIC expands and acquires Gretsch, Jackson and Charvel
• 2004: Fender releases a 50th Anniversary 1954 Stratocaster
• 2005: Bill Schultz retires; FMIC launches EVH brand in collaboration with Eddie Van Halen
• 2015: Fender introduces new CEO Andy Mooney and launches Fender Digital
• 2016: FMIC returns corporate headquarters to Southern California with offices in Hollywood
• 2018: Fender launches a contemporary effects pedal lineup
• 2019: Fender debuts Tone Master Twin and Deluxe Reverb amps
• 2023: Fender launches the Tone Master Pro floorboard modeler
• 2024: Fender celebrates the Year of the Stratocaster with special 70th Anniversary models

CBS Sells Fender to Bill Schultz Team

While the CBS era of the Stratocaster, and Fender as a whole, remains a scrutinized two-decade period in a historic (and ongoing) 70-year legacy, the brand did enjoy some success during that time. Fender nearly doubled its profits in just two years after the CBS acquisition, upping production and placing Strats in players’ hands at a rapid clip.

It was also an innovative span, which introduced the Starcaster, “Silverface” guitar and bass amps, and the Seth Lover-designed Wide Range humbucker—Fender’s first pickup of its type. Unfortunately, though, these small triumphs would pale in comparison to narrowing profit margins and the public’s growing disinterest in the brand.  

Vintage purists are often critical of CBS-era Stratocaster guitars, deifying pre-CBS models and perhaps unfairly demonizing late ’60s and ’70s instruments as inferior. Most importantly, many of the day’s contemporaries were certain of a decline in quality and consistency, ultimately contributing to the company’s downward trend in the late-CBS years.

To learn more about this era of Fender and the Stratocaster, check out 1965–1985 | The Fender Stratocaster During the CBS Era.

By the early 1980s, Fender’s popularity had waned, and CBS was faced with numerous difficult decisions regarding the company’s future. The first measure by CBS—presumably an attempt to potentially salvage Fender—was onboarding an experienced cohort of executives from Yamaha. John McLaren would head the entire CBS Musical Instruments conglomerate, hiring Bill Schultz as president of Fender. Schultz would subsequently bring on Dan Smith as a chief designer and reinventor of the Stratocaster.

In this early stage of what would be another upheaval in Fender history, Schultz temporarily halted U.S. production at the Fullerton, California, plant as Smith, Master Builder John Page and other insiders worked to reimagine the manufacturing process. Vintage Series 1957 and 1962 Stratocaster reissues were among the first models launched under new leadership in late 1982, while Fender Japan Ltd. was officially founded earlier that same year.

Pictured: 1995 Fender American Standard Stratocaster in Burgundy Mist with Maple Neck

Significant achievements as these were, CBS ultimately decided to offload many holdings unrelated to broadcast during this time, including Fender and other musical instrument companies.

Our story of the Stratocaster’s resurgence, then, begins at the NAMM Show in February 1985. Then-president Bill Schultz announced that he and a group of ten Fender employees, backed by investors, would purchase the company from CBS for $12.5 million—half a million dollars less than what Columbia Broadcasting originally paid Leo Fender two decades prior.

The sale concluded in March 1985, and the company was rechristened Fender Musical Instruments Corporation (its name to this day). Crucially, CBS left the Fullerton factory and many Fender patents out of the deal, in what’s been viewed by some as a spiteful attempt to sabotage efforts at revitalizing the brand.

Fender had been a costly thorn in CBS’ side for years—the corporation had clearly lost faith in the musical instrument business and was forced to sell one of the world’s biggest guitar names for less than the asking price in 1965. Presumably, it was a humiliating loss for CBS, who clung to key assets in the sale.

Undeterred, Schultz and his consortium forged ahead, temporarily renting office space at the Fullerton factory from Columbia while FMIC searched for its own real estate. Without a manufacturing plant, between February and October 1985, U.S. production was completely shut down.

For this transitional stint, all new Fender guitars were produced at the renowned Fujigen workshop contracted by Fender Japan, which supplied the American market with Standard, Reissue and Squier models. At the same time, Fender Japan was independently evolving the Stratocaster by creating Superstrat versions of the guitar for ’80s metal and shred enthusiasts.

Contemporary Series and HM Series instruments prominently featured flatter, D-shape neck profiles, humbuckers and floating tremolo systems. These early, cutting-edge Made in Japan (MIJ) Fender Strat and Tele models were exported to the U.S. and adopted by players such as Greg Howe, who played an HM Strat; Black Francis (of the Pixies), who chose a Contemporary Telecaster; and Neal Schon, who picked up a Contemporary Stratocaster.

FMIC opened its flagship factory in Corona, California, approximately eight months after announcing and finalizing the company’s purchase from CBS. A new era was underway.

1987: A Huge Year for Fender and the Stratocaster

With FMIC on its feet by the end of 1985, Dan Smith hired George Blanda to spearhead the Fender Custom Shop, with the initial goal of producing a small number of artist signature models. Fender Japan would continue exporting instruments to the American market, and Vintage Series ’57 and ’62 Stratocasters would be produced in small numbers stateside at the Corona facility.

Unforeseen economic circumstances skyrocketed the Japanese yen’s value against the dollar, prompting Smith and Blanda to shift their focus from the Custom Shop to a proper Made in USA Stratocaster lineup. As a result, the American Standard Stratocaster debuted in 1987 and was a perpetual model until 2017. By this point in the ’80s, the Corona plant had also started manufacturing other newly developed Strat lines, including the Plus Series and forthcoming Signature Series.

Pictured: 1987 Fender '62 Stratocaster Reissue in Black

That same year, the Fender Custom Shop officially opened, cofounded by Master Builders George Blanda, Michael Stevens and John Page. It was instrumental in developing the Signature Series, and the Custom Shop’s earliest output was an Eric Clapton Strat in the later part of ’87. In 1988, standard production Signature Series guitars for both Eric Clapton and Yngwie Malmsteen hit shelves.   

In another massive move in 1987, Fender opened a factory in Ensenada, Mexico. It took several years of development—which included bringing in staff and machinery from Japan’s Fujigen shop to train workers—before Made in Mexico (MIM) guitars appeared on Fender’s price list, circa 1991.

Built in the Japanese tradition, MIM Stratocasters would eventually surpass MIJ models as Fender’s go-to import line. The original MIM Standard Series Strat was in production from 1991–2018, was replaced by the Player/Player II/Player Plus Series and is still made in Mexico today.

For the full story on Fender's Made in Japan (MIJ) line, check out The True Story of Fender "Made in Japan" Guitars.

The Other Companies Fender Owns and How They Relate to the Strat

As FMIC saw exponential growth in the Fender and Squier brands in its first decade and a half of business, it welcomed Jackson and Charvel under its ever-expanding umbrella in 2002.

In an interesting exhibit of crosspollination among brands, Fender’s takeover permitted Charvel official use of the Stratocaster headstock on their famous San Dimas Superstrat. In the ’80s, the Grover Jackson-owned Charvel produced guitars with a pointed headstock (later a Jackson hallmark) instead of the Strat-style carve found on its earliest, late-70s Superstrats—likely due to trade dress infringement and no longer an issue.

Pictured: Jackson American Series Soloist SL2MG in Satin Lambo Orange

Fender also owns and helped establish EVH alongside Eddie Van Halen in 2005, which continues to develop innovative guitars and amps inspired by an indelible legacy. One look at 2021’s American Ultra Luxe Stratocaster with a Floyd Rose and HSS pickup configuration, and it’s safe to say Fender has pulled inspiration from EVH, too.

Thanks to common ownership among these revered names in the guitar world, a little bit of true Strat DNA can be found in high-performance offerings by EVH, Jackson and Charvel, and vice versa.

FMIC is also home to legendary guitar brands Gretsch and Bigsby, as well as recording and software powerhouse PreSonus.

The Evolution of the Stratocaster From 1985 to Present Day

There have been hundreds of iterations of the Fender Stratocaster from 1985 to the present day, denoting what can surely be described as the “resurgence” of an illustrious guitar. With so many artist models, limited runs, Custom Shop masterpieces and more, covering every Strat from ’85 on would be a herculean task. Instead, we’ll highlight some of the most classic, enduring examples of USA Fender guitars from the existent FMIC period.

Fender American Standard Stratocaster (1987—2017)

Kicking off the post-CBS era, Fender reestablished its foothold in the musical instrument space with 1987’s American Standard Stratocaster. This was a guitar entirely based on Leo Fender’s timeless design, adding a few modifications for the modern player at the time. Compared to CBS Strats, Dan Smith and George Blanda notably went back to the smaller headstock and the four-bolt neck joint, keeping the Micro-Tilt adjustment mechanism introduced in 1971.

Pictured: Fender American Standard Stratocaster Bridge

They also developed a new two-point Synchronized Tremolo system affixed to the body with a pair of posts rather than six screws. The first American Standard Strat’s single coils also featured a reverse wound/reverse polarity middle pickup, canceling hum in positions two and four on the 5-way blade.

Fender’s American Standard Series is arguably one of the most important developments in brand history. It stayed in production, with various trims, for 30 years, until it was eventually succeeded by the American Professional Series in 2017.

Fender Plus Stratocaster (1987—1998)

Concurrently, the Plus Series Stratocaster was in production from 1987–1998. Based on the American Standard, contemporary upgrades included locking tuners, Fender Lace Sensor pickups and a Trevor Wilkinson-designed roller nut. Lace Sensor single coils sounded like 1950s Strat pickups but eliminated the associated 60-cycle hum for less noisy performance, while the roller nut reduced string friction while using the tremolo. There would also be a Deluxe Strat and Strat Ultra in the Plus Series.

Fender American Deluxe Stratocaster (1998—2016)

The American Deluxe Series ran from 1998–2016 as a higher-end version of the American Standard Stratocaster. Again, Fender studied Leo’s 1950s creations during the design process and recalibrated CNC machines at the Corona factory for more authentic, truer-to-the-original body contours. Plus, the American Deluxe Strat came in transparent finishes, so extra care was taken to choose a nicely figured piece of alder or ash for the body.

Pictured: 2005 Fender American Deluxe Stratocaster

Fender also introduced its modern C-shape neck for the first time, with a smoother profile and rounded fretboard edges. Vintage Noiseless single coils additionally made their debut appearance in the original American Deluxe Series offering. Other tweaks and improvements occurred in each of the lineup’s three phases over the course of nearly 20 years, but the guitar never strayed far from the concept. It was finally retired and succeeded by the American Elite Series in 2016.

Fender Signature and Artist Series Stratocasters (1988—Present)

Since the inception of the Custom Shop in 1987, Signature and Artist Series Stratocaster guitars have been a major part of the Fender catalog, beginning with Eric Clapton and Yngwie Malmsteen production-line models in 1988. These unique instruments combine favorite specs and characteristics of music’s most legendary players.  

Pictured: Fender Custom Shop Stevie Ray Vaughan Signaure Stratocaster

Artists who’ve received a signature Fender Strat over the years—in high-end Custom Shop and American/Mexican production versions—include Buddy Guy, Eric Johnson, Jeff Beck, Jimi Hendrix, George Harrison, John Mayer, Nile Rodgers, Mike McCready, Stevie Ray Vaughan, Ritchie Blackmore, David Gilmour and Tom DeLonge, to name a modest sum.

Fender Stratocasters With Humbuckers and Floating Tremolos

When examining the more daring and evolutionary Strat designs in history, the MIJ Contemporary Series was the first to dabble with H, HH and HSS pickup configurations, a floating tremolo system and atypical electronics.

These originally showed up in Japanese catalogs in 1983 under the Squier name and were not exported to the U.S. By 1985, however, both Squier- and Fender-branded Contemporary Series Stratocasters were arriving in the States for adventurous, acrobatic guitarists playing hard rock, metal and shred. They were usually rigged up with a Kahler Fulcrum or proprietary Fender floating bridge.

Pictured: Fender Highway One Series HSS Stratocaster in Black

Electronics typically consisted of a single volume and tone knob, as well as a coil-splitting switch on certain models. If a Contemporary Stratocaster had only one humbucker, it would ship with a single volume knob and nothing else.

Subsequently, there have been many humbucker- and Floyd Rose-equipped Stratocaster guitars, pairing classic looks with the aggressive sound and outstanding playability of a fast, furious Superstrat. These are certainly the most extreme deviation from Leo Fender’s 1954 design.

Currently, the Fender-owned Charvel and Jackson brands offer some of the finest examples of speed-demon Superstrats.

Current Fender Stratocaster Guitars

Today’s comprehensive lineup offers something for everyone, whether you prefer vintage style and tone, or contemporary versatility and playability. The following is an overview of the current-day Fender Stratocaster by series and general specs:

• Player II: Made in Mexico. Beginner level. Alnico 5 single coils or HSS version with Alnico 2 bridge humbucker. Modern C-shape neck. Under $1,000.
• Player Plus: Made in Mexico. Beginner–intermediate level. Noiseless single coils or HSS model with Noiseless bridge humbucker. Modern C-shape neck. Locking tuners. Around $1,000 and currently on sale.
• Vintera II: Made in Mexico. Intermediate level. Take your pick of ’50s, ’60s or ’70s throwback styling. Above $1,000 and currently on sale.
• American Performer: Made in USA. Intermediate level. Yosemite single coils or HSS model with Double Tap bridge humbucker. Modern C-shape neck. Above $1,000 and currently on sale.
• American Professional II: Made in USA. Intermediate level. V-Mod II single coils or HSS with Double Tap bridge humbucker. Deep C-shape neck. Under $2,000 and currently on sale.
• American Ultra: Made in USA. Session player and gigging pro level. Ultra Noiseless Vintage Strat single-coil model or HSS version with Ultra Double Tap bridge humbucker, plus Ultra Noiseless Hot Strat single coils. Modern, compound-radius, D-shape neck. Around $2,000.
• American Ultra Luxe: Made in USA. Session player and gigging pro level. Ultra Noiseless Vintage Strat single coils. HSS model with Double Tap bridge humbucker, Ultra Noiseless Hot Strat singe coils and Floyd Rose tremolo system. Augmented, compound-radius, D-shape neck. Under $3,000.
• American Vintage II: Made in USA. Studio session or gigging pro level. Choose from models based on the 1957, 1961 and 1973 Stratocaster. Vintage-style specifications throughout. Under $2,500.
• Artist Series: Made in USA and Mexico. Intermediate to professional level. Specs and features dependent on signature artist. Series includes Jimi Hendrix, Tash Sultana, Mike McCready, H.E.R. and Bruno Mars models, plus more. From $1,150 and up.

For a deeper dive into Fender's current Stratocaster offerings, be sure to check out How to Buy the Best Stratocaster.

What Makes the Fender Stratocaster Legendary?

Entering its eighth decade, the truly legendary Fender Stratocaster has stood the test of time and become an instrument synonymous with rock itself. In the hands of countless talented artists throughout history, the Strat has been the fundamental sound of thousands upon thousands of hits.

The Fender name alone is ubiquitous across the globe, and current CEO Andy Mooney’s expansion of lifestyle merchandising is a testament to the fashionable status the brand has achieved in the 21st century.

At the beginning of 1985, it was a bit uncertain what Fender would become. By the end of that year, there was already a clear path forward, charted by passion and the mission Leo Fender instated from day one.

Dan Smith, interviewed by author and guitar journalist Tom Wheeler, once explained his role at the company: “It’s to protect the past, carry on the tradition and make a future for Fender. Leo … was constantly trying to make a better product—pushing the envelope. He never stopped. Neither do we.”

From Left to Right: 2005 Fender American Deluxe Strat, Fender Highway One HSS Strat, 1987 Fender '62 Strat Reissue, Fender American Standard Strat

Bill Schultz added, “We try to emulate [Leo’s] philosophy and his principles by building instruments with the same passion that the players bring to them … We are disciples of Leo.” Honoring the past, while striving for perpetual innovation, has propelled Fender and the Stratocaster to nearly unimaginable prominence. Today, it shows no signs of slowing down.   

For more reading like this, check out The History of the Fender Stratocaster and 1954–1965 | The Evolution of the Fender Stratocaster.

And if you’re feeling inspired to pick up a preloved Strat of your own, feel free to browse our selection of unique vintage pieces, and add some old-school magic to your collection. You might also refer to How to Buy a Vintage Fender Stratocaster to aid in your search. Don’t forget our used offerings, where you can find excellent deals on newer Fender guitars, too.

As always, you can visit your local Guitar Center to browse in person and discover for yourself what makes the perfect Stratocaster so special. Our in-store Associates would be happy to help find the right Fender guitar for you.

Have a question that needs answering? Guitar Center’s knowledgeable Gear Advisers are on standby at 855-770-3373.