"lower housing of the left rear shock absorber has separated from the rest of the shock and is moving freely inside the spring."

must be some mistake there - the shox and springs are mounted separately on volvo delta axle.

If you're referring to a dull-orange coloured, hard-rubber cylindrical shape piece measuring some 5 by 3in, which is hanging loose at the bottom of the rear spring mount, then I agree with Jan - the BUMP-STOP has fallen off after a hard thump.

you don't need a volvo mechanic to look at it, just call the dealer, explain "Rr bump-stop fell off" and he'll know exactly what to get you.

all you need is a plastic (white colour) "plug" like thingy costing mebbe a buck or two. just picture one of them plastic DIY "tube" thingys which you insert into the hole in the wall, which is meant to secure a screw tightly (you'll notice I'm not at all good at terminology!) now the end of this "plug" kinda expands with a click once inserted and can then no longer be removed.

you just haveta place the bump-stop where it was meant to be, insert that "plug" and push it thru with a long screwdriver till it clicks.

see, it's a very common thing, happened on my wagon recently too. tried gluing it back but it fell off after awhile. oh, and it won't affect your ride unless you frequently and regularly bottom out your suspension doing hi-speed jumps off crests or road humps.

rgds

jeff

95 855T5A