The fine German engineers that designed the 124 wagon didn't in their heart of hearts think that the rear seats should be folded down, and designed them accordingly. Try this - raise the rear hatch, wedge a long 4 inch steel pipe between the seat back and large building behind you, then back up the car until either the pipe bends or the seat back comes down. I once had 4 people, large size, at a dealership try to get the seat back down, they never did get it, and that was when the car was relatively new.