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I bet the cross member is loose[740-760/89] posted by George Swift on
Thursday, 11 June 1998, at 3:26 p.m.
Check the two bolts (per side) that hold the crossmember in. You get to them from under the hood. I don't know the torque but they should be RFT. ( real tight) The noise when they are loose is described as a knocking or snapping noise that usually only happens when changing directions, and applying brakes.
The rear bushings probably need to be done, but if you have bad shox, (KYB, Sears, gabriel, Monroe, etc) they add a knock that drives me insane. Now you know what happened to me. Shocks from the asylum, and shocks from the USA. Volvo uses the rear shox as the suspension stops. Most shox don't have provision for that. VERY FEW DO. They (cheap shox) may not rattle at first, but they will.
--George Swift / Volvo Car Care