My car has been making a clunking noise from the rear at low speeds. I just got off the phone with a local shop that I've never used before, but the guy knows the car (my old guy retired). He says it's probably the bushings. He's done the job before. He says that there's an upgrade kit from Mercedes made for the 300E that he recommends installing on a 16V because if you put the OE bushings on they will just wear out again.

Anybody know anything about this problem and/or the upgrade? Anybody ever done this job?

He probably means rear subframe bushings. They can be easily inspected and I would do so before replacing them. What do you mean by upgrade? The sportline bushings? I think the normal ones are fine, BTW there is not 16V for this engine.
Loose / worn struts could also lead to such noise, as well as shot suspension links etc. There is lot of stuff that can cause noise in the rear end. Good luck, Bruno

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300TE 1992 137'000 miles