No other heater core brands, including the original Volvo, come with or use a foam collar. Doesn't look like that foam strip is needed or should be used in the 700/900s. if I had to make a wild guess, Nissens simply made a mistake because this heater core is also used in the 90 series , which used a 700/900 air distribution box in the early series, while the later 90 series used the FWD air box, much like the 850 which does use that foam collar. Double check the profile of the new one against the original just in case it is needed to bulk up one of the dimensions or could be used for padding somewhere to prevent rattling or even use it on the door shutter if the original foam is damaged.
(Edit I originally said this heater core was used in the FWDs, but that part number has a different last digit)
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Dave -still with 940's, prev 740/240/140/120 You'd think I'd have learned by now
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