Holden Commodore driver Allan Grice — so often frustrated in previous efforts to win at Bathurst — finally triumphed in the James Hardie 1000 of 1986. Partnered by car owner and sponsor Graeme Bailey, Grice won by 90 seconds from another Commodore, crewed by John Harvey and Neal Lowe.

Twenty seconds further back in third was the factory Nissan Skyline of polesitter Gary Scott and Terry Shiel.

Sadly, a crash which claimed the life of popular gentleman racer Mike Burgmann cast a pall over the event. On lap five Burgmann lost control of his Commodore on the fastest section of Conrod Straight, slamming into a barrier near the JPS Bridge. Burgmann was the first touring car driver to die in the Bathurst classic.

The race was notable for its high failure rate and early retirements. Only 27 of the 59 starters saw the chequered flag. The '86 Hardie also produced controversy with a dispute over third placing. Dick Johnson and Gregg Hansford claimed they'd finished ahead of Scott/Shiel and the Ford Mustang pair presented themselves on the dais to collect the trophies. However, the Nissan drivers were later confirmed in third.

Grice drove all but 26 of the 163 laps. He set the fastest lap of the event — 2 min 18.99 sec — to create a new Group A touring car record. But it was not all smooth going for the Grice/Bailey team. A slow differential leak necessitated a lengthy pit stop, and the leading Commodore continued to lose oil from the rear-end until the finish.

Other teams did not enjoy Grice's fortune. European ace Roberto Ravaglia was outed early when his BMW was clouted from behind by '85 winner John Goss in a Jaguar. Goss later encountered fuel-feed problems and finished a modest 24th. Pre-race favourite George Fury retired late in the classic after an endless succession of tyre problems.

Eight-time Hardie winner Peter Brock, partnered by old adversary Allan Moffat, did not have a happy time. Moffat destroyed the front of the Holden in practice, forcing the duo to start back in 11th. Brock fought his way to second in the early going, but a split oil cooler dropped the super team out of contention. They battled on to take fifth.

The championship winner Volvo Dealer Team 240 turbos also failed to figure and the local works BMW635s could not match the scorching pace of the V8s. Best of the ‘Bee Em’ finishers was Jim Richards/Tony Longhurst, who were sixth. Seventh outright was the Commodore of Belgian Michel Delcourt and Sydney's Graham Moore. Delcourt also won the 'Rookie of the Year' award. The first 10 was rounded out by Warren Cullen/Gary Sprague (Commodore), Franz Klammer/Denny Hulme (Mercedes-Benz 190) and Murray Carter/Bill O'Brien (Commodore).