The sway bar bushings commonly wear out, causing a knocking noise from the front of the vehicle. Replacing the worn bushings should correct this concern.Google+
Car Problem Reports
Volvo 960 Worn Sway Bar Bushings Causing Knocking From Front End
Volvo 960 Problem
Average Mileage: 169,927 mi (145,000 mi - 209,635 mi)
Visitor, 1997 Volvo 960, 175,000 mi
Went over 2 larger speed bumps in a parking lot and immediately the car started knocking. the handling of the car is not compromised and being that its so old, i don't see the point of fixing it. Might get a second opinion other than my own.
Visitor, 1996 Volvo 960, 160,000 mi
Part worn out - rubber cracked. Rattled and noise when driving. Replaced - all is well :)
Visitor, 1997 Volvo 960, 209,635 mi
Have had this same problem but have not changed sway bar bushings yet to see if that resolves it.
Visitor, 1995 Volvo 960, 145,000 mi
knocking front end when hitting bumps