Purchased 2 VOLVO exhaust systems from the dealer in the hope that not only would they last longer, but that they would fit better as well. Boy was I in for a surprise with the fit part.

Exact same scenario that you illustrate...pipe banging on the body seam. After two futile attempts to adjust it as best I could by twisting and turning other adjacent components, I went to work with the sledge hammer after marking and removing the pipe. This still didn't give me the clearance I needed and more wacks would have made a very serious impression I wasn't willing to inflict. Next step was to cut off a bit of the pipe where it buts into the rear muffler with a sawzall. That pushed it over to the left side enough to clear that seam.

In hindsight I should have FIRST cut off the pipe end as much as possible without it interfering with tight clamping, and then whacked away on whatever and wherever needed for proper clearence. Less flow constriction.

Overall, I was disappointed with the fit and should have let the dealer know about this, but didn't. At least I'll know how to handle the next install.