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Atari,
Looks like the inlet to the muffler rusted out... the axle pipe appears to be intact. If so a new rear muffler, tail pipe(optional if in good shape), clamps and hanger rubber blocks should fix it. I just replaced the axle pipe,rear muffler and tail pipe on my 88 244DL. Soaking the pipe joint with B'laster a couple of days in advance may help get those pipes apart. That's usually the hardest part of job. If you buy your own parts and DIY ... I've found Bosal exhaust components are much better than the commonly available Starla/Walker stuff. Import Parts Specialists out of Boise Idaho carry both ... and I ordered my Bosal parts from them. Bosal actually costs less than Starla from IPS. You may want to check out their web site ... good outfit, nice people and good prices. http://www.importpartsspec.com/
Some folks order OE parts from Borton Volvo on line. That's another option if you want genuine Volvo parts. Bosal used to and may still supply OE exhaust parts to Volvo ... and their stuff appears and functions in service much like Volvo OE components but at lower cost. My $.02
Nice looking 245 by the way.
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