Hi,
There is two option that will need to be done.
1=The rear shock top pull apart and start knocking.
2=The rear trailing arm bushes,on each suspension arm the bush perishers and the arm ends up knocking on the chassis.
Hope this helps.
Thanks,Mark
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BMW Technician
Senior BMW technician,NVQ 3 CITY GUILDS 3 RTITB Level 3