6.1 Panhard Rod
The Panhard rod itself is fitted between a bracket on the rear of the differential cover and a bracket on the chassis to the left hand (nearside) end of the chassis rail above the axle (see Chassis Diagrams). This keeps the axle from moving laterally (sideways) when cornering.
The Panhard rod bracket (supplied with the NG chassis kit) is fitted onto the differential housing but requires the flange of the differential cover to be ground or filed away as shown in photo 2. The bracket is then attached with two longer bolts. Note that the threaded hole for the Panhard rod itself is offset to the right (offside) of the vehicle.
Subsequently (13 years later) I have discarded the Panhard rod as the bushes in it were beginning to show signs of wear and it is not well designed, being much too short. A good Panhard rod should be as long as possible so that the arc it swings through restricts the axle from moving much laterally. There is not really a need for one (as long as the leaf spring bushes are in good condition) unless the car is to be used on a race track. I have certainly not noticed any difference in the handling since removing the Panhard rod.