Dodge Delays 2026 Charger R/T EV After 80% Sales Drop and U.S. Tariffs Hit Stellantis

May 27, 2025
2 mins read
The 2024 Charger Daytona. Photo Source: Stellantis Media
The 2024 Charger Daytona. Photo Source: Stellantis Media

The multinational automaker Stellantis has postponed production of its 2026 base-model electric Dodge Charger Daytona R/T at its Windsor, Ontario plant. The company points to “ongoing uncertainty caused by the Trump administration’s tariff policies” as the main reason for the delay.

The decision comes amid a broader industry adjustment to new trade barriers and changing consumer attitudes toward electric vehicles.

“Production of the Dodge Charger Daytona R/T has been postponed for the 2026 model year as we continue to assess the effects of U.S. tariff policies,” said Dodge CEO Matt McAlear.

Tariffs create cross-border manufacturing challenges.

The delay follows significant trade policy changes earlier this year. The U.S. imposed a 25% tariff on imported vehicles in early April, followed by a similar 25% tariff on imported auto parts in early May. Canada responded with its own 25% tariffs on certain American vehicles not meeting USMCA requirements.

These tariffs have already affected Stellantis’ operations. In April, the company temporarily halted minivan production at the same Windsor plant for two weeks.

“Obviously, this decision is linked to U.S. tariffs, and so, as we said, we would continue to fight for Canadian jobs, create new ones and grow the Canadian economy,” stated Canadian Innovation, Science and Industry Minister Mélanie Joly.

Jobs protected as focus shifts to higher-end models.

Despite the R/T model delay, Stellantis confirms that jobs at the Windsor plant remain secure for now. The facility will continue producing other Charger variants, including the more powerful Scat Pack model.

Flavio Volpe, President of the Automotive Parts Manufacturers’ Association, noted that focusing on higher-end electric variants indicates a strategic adaptation to mitigate revenue losses from the base model delay.

EV demand shifts prompt product strategy adjustments.

Beyond tariffs, industry experts point to changing consumer attitudes toward electric vehicles as a factor in the decision. Peter Frise, Professor of Mechanical and Automotive Engineering at the University of Windsor, explains that while tariffs matter, “there’s no point in spending money building a factory to build a type of vehicle that isn’t selling”.

The numbers tell part of the story. According to Carscoops, In Q1 2025, Dodge delivered 1,947 electric Charger Daytonas, compared to 1,052 out-of-production gas Chargers and 922 Challengers in the same quarter. These figures show a steep decline from Q1 2024, which saw 10,660 Charger and 9,737 Challenger sales.

Daniel Ross, Senior Manager of Auto Industry Insights at Canadian Black Book, noted that, “in the enthusiast niche of the market, EVs are a tough sell in general, especially lower-performance models like the R/T.”


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Diversifying the lineup with new options.

While delaying the base EV model, Dodge is moving forward with other Charger versions. The company recently unveiled a four-door version of the electric Charger Daytona, marketed as the “world’s only four-door muscle car.”

Both the two-door and four-door Scat Pack models will offer 670 horsepower and 627 lb-ft of torque. They can accelerate from 0 to 60 mph in just 3.3 seconds – matching the performance of the previous gas-powered Hellcat Redeye model.

Dodge has also confirmed the return of gas-powered Charger models (called “Sixpack”) later in 2025. These will feature a 3.0-liter Hurricane twin-turbo inline six-cylinder engine with up to 550 horsepower.

Long-term electric commitment remains despite delay.

The R/T model delay doesn’t signal an abandonment of Stellantis’s electric future. The company has invested $2.8 billion in its Windsor and Brampton facilities as part of a larger $35 billion global investment in electrification and software development.

The company is also developing advanced battery technologies. Its partnership with Factorial Energy has successfully validated high-density, fast-charging solid-state battery cells, with a demonstration fleet planned for 2026.

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Financial pressures mount.

Stellantis faces financial challenges that likely influenced the decision. The company reported Q1 2025 revenues of €35.8 billion, a 14% decrease compared to Q1 2024. This decline stems from lower volume, adverse regional mix, and price normalization.

The company has suspended its 2025 financial guidance due to tariff-related uncertainties, highlighting the serious impact of these trade barriers on planning and operations.

As automakers navigate a complex transition to electric vehicles amid changing market conditions and trade policies, strategic production adjustments like the Charger R/T delay may become more common across the industry.

Sunita Somvanshi

With over two decades of dedicated service in the state environmental ministry, this seasoned professional has cultivated a discerning perspective on the intricate interplay between environmental considerations and diverse industries. Sunita is armed with a keen eye for pivotal details, her extensive experience uniquely positions her to offer insightful commentary on topics ranging from business sustainability and global trade's environmental impact to fostering partnerships, optimizing freight and transport for ecological efficiency, and delving into the realms of thermal management, logistics, carbon credits, and energy transition. Through her writing, she not only imparts valuable knowledge but also provides a nuanced understanding of how businesses can harmonize with environmental imperatives, making her a crucial voice in the discourse on sustainable practices and the future of industry.

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