Yes, it is reduced.

It's sort of like mounting shock at an angle.

I'd call Hotchkis and ask if they have a fix or suggustions. But shortening the end link to get the sway bar arm perpendicular to the end link at ride height would fix it.

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Or anyone else who wants to chime in!

I've heard that the ends of a sway bar need to be parallel to the ground for their maximum effectiveness...is this true? I would think that the angle of the sway bar is irrelevant, but that the length of the ends from the center of the bar, and the diameter/spring rate of the bar are all that matters?

I added a rear sway bar from a Dakota R/T to my truck, but I've also got a Hotchkis 2/3 drop, so my rear is 3" lower than "factory" which is 2" lower than a stock R/T would be, since the R/Ts had a 1" drop from the factory.

See this pic, my sway bar is angled down at nearly a 45 degree angle...do I need shorter "dog bones"