The Citroen Xsara rear axle problem stems from the (poor design) lack of drainage of the main axle hollow tube which holds the inner stub axles, either side, which turn on inner and outer bearings. They are about a foot long. Once water gets in through the seals it apparently can't get out, resulting in the short inner tube eventually welding itself to the outer axle tube with rust, and thereby setting up a cycle of ever increasing rust constriction of the tubes and bearings. Once the rust gets into the bearings, it grinds away at the polished surfaces, they quickly disintegrate and the stub starts to rub on the outer axle tube as the weight of the vehicle grinds down the rusty, collapsing bearings.
This then causes the typically observed rubbing of the tyre against the inner wall of the wheel arch bulkhead. This generates an MOT report all by itself.
I have been told that, to obviate the problem, Citroen fitted grease bearings to the continental cars but not to the British. Built in obsolescence run riot by a cynical manufacturer..? Even a drainage hole would have helped, either side, between the inner and outer bearings, don't you think?
The only option offered by Citroen is to replace the outer axle tube, the two inner stubs and the sets of bearings and seals. A lousy design, in my opinion. I replaced one axle with collapsed bearings only to have a second hand one fitted, which turned out to be seized. The only comeback I had (as suggested by the parts supplier - was to have the seized axle removed and returned and they would refund my £120 at a further cost of at least £100 - but with no replacement). A waste of £120 + £200 + another £100 labour, and then have no rear axle!
Since then I have been driving around in a car that feels like a bouncy skate board. It attracts the gleeful failure reports of ignorant MOT inspectors, of course, because it is interpreted as seized dampers, and the rear axle load sensing valve (which affects the brakes) seizes up due to lack of movement, etc.
Edward Paul Campbell, June 2011