I have the same problem.. I found this on the net yesterday.. It is
suspension related.
Q. The handling of my Peugeot has become unpredictable and it sometimes
feels like the rear end is wandering during cornering. What is wrong?
A. There are two possibilities here, and both need resolving immediately:
1. Check the rear sub-frame rubber mounts as they often split in half,
particularly on older models.
2. Check for play in the trailing arm bearings. These are the bearings
that the trailing arm pins locate in, inside the rear suspension tube.
They allow the trailing arms to move up and down smoothly. They regularly
wear out, particularly if moisture has got inside the bearing tube. You
can test for play with the car raised off the ground at the rear - try and
move the wheel in and out of the wheel arch. It should only move up and
down, not in and out (small movement of the wheel when grasped either side
could be a worn wheel bearing). Replacement of the bearings is a specialist
job. Often the bearing surface of the pins will be worn as well, and if so,
they must be replaced. It will probably be more cost effective to replace
the whole sub-frame with a reconditioned unit. Beware when buying 2nd hand
sub-frames, as the bearings are generally in poor condition once past 5-6
years old.
>> Stay informed about: MY 306 Whips in when turning right!