Just bought a 91 240 wagon in Georgia, driving it it back to Upstate NY Drives ok with no noise or vibration. Just noticedit dogtails to the right. {You can see portion of front left tire while following} Had the front struts replaced with alignment. Still dogtails. After close look, the drivers side axel housing looks bent {toed in} Is this possible without any rear end noise or vibration?

The 240s have a wider track in the front than the rear thus when driving behind a 240 the rear will look a bit "off" to the side since the rear wheels do not follow the fronts tracks. I heard they built them like this due to some old Swedish DOT law.

It sure is possible. The rear axle housing on my wife's 1986 745T was bent when we bought the car. They can be straightened (I think the alignment shop offered to do it for $275), but I bought a complete used assembly for $75.

Driving the car in a straight line, you didn't notice anything wrong. When you drove around corners at freeway speed, the direction of the car changed noticeably when the road was bumpy. When you looked down the outside of the right rear tire, you could see that it did not align with the right front tire. The left side was fine.
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john

Not sure why, but the rear ends of 240s I've had all seem to be offset a bit from the front - really noticeable if you drive straight through light snow and then look at the tracks from the tires. I guess it's a function of the Panhard rod (track bar) in relation to the ride height as determined by spring rate and vehicle load, and it could be altered with an adjustable panhard rod. Toe problems, however, aren't so simple and are the result of some sort of impact. I'd definitely take John's approach and replace it if it's bent. There's enough float in the bearings that it wouldn't necessarily cause noise, but I wouldn't bother straightening a bent housing, even if a shop says they can do it. I hit a curb one night, trying to miss a fire hydrant, as I slid down a hill in an ice storm. Buckled the panhard rod, bent the housing, and folded the rim up into the caliper. Took about $150 and the next afternoon to put things right. The worst of it was the lower shock bolts, seized into the sleeves.
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Chris, Dartmouth NS Canada 70 M-B 280SE, 83 245DL, 84 244 turbo, 90 780 turbo, 92 VW Golf, 90 740 Rex/Regina

I should have mentioned that 740s (with live axle) have the same track, front and rear. 240s have a different track, front to rear. 760s with IRS have a different track, fron to rear. Obviously on 760s with IRS, you can't bend a rear axle housing since there isn't one. There is lots more to bend and break, though.

Track is the width across the tires, however you want to measure it, on the same axle.
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john

Thanks for the replies,THe rear axel housing is obviously bent.
Just looking at the drivers side and comparing it to the passenger side, you can easily see the housing is toed in. Going down the road the wagon s rear trail to the right. but there is no noise or vibration,
My concern is not the handling manners, it's just as good as my 89 wagon, I'm more worried about the rear going out and that always happens at at the most inopportune time.
If I do need to replace the rear end which ones {years} are compatible with the 91 240 wagon?

I wouldn't worry much about the rear end breaking, the few bad ones I've encountered have made horrible noises, progressively getting louder, for hundreds of miles before actually seizing or breaking. If you jack up the rear end and spin the wheels by hand is there any binding or noise on the bent side? And (no offense intended - but you wouldn't be the first to be fooled by this) are you certain the problem is the housing itself, and not a torque rod that's bent or has worn bushings?
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Chris, Dartmouth NS Canada 70 M-B 280SE, 83 245DL, 84 244 turbo, 90 780 turbo, 92 VW Golf, 90 740 Rex/Regina