The race distance was shortened from 163 laps to 161 for 1987 following the addition of the Caltex Chase, a chicane inserted onto Conrod Straight. The modification was made in direct response to the death of Mike Burgmann in an accident during the previous year's race, with the new complex designed to reduce approach speeds to one of the circuit's most dangerous sections. The addition of the Chase slowed lap times by approximately four to five seconds compared to previous years.
Three classes competed in line with World Touring Car Championship regulations. Class 1, the outright category for cars with engines over 2500cc, featured Ford Sierra RS500s, Holden Commodore VLs, BMW 635 CSis, Nissan Skylines, Toyota Supras, Mitsubishi Starions, and a Maserati Biturbo. Class 2, for engines between 1601cc and 2500cc, included Alfa Romeo 75s, BMW M3s, Mercedes-Benz 190Es and Nissan Gazelles. Class 3 catered for cars with engines between 1001cc and 1600cc, consisting mainly of Toyota Corollas and a single Alfa Romeo 33.
The Top 10 Shootout, known as Hardies Heroes, saw three-time Le Mans winner Klaus Ludwig become the first Bathurst rookie to claim pole position. His time of 2:16.969 in the Eggenberger Motorsport Ford Sierra RS500 set the tone for a European-dominated qualifying session. Andy Rouse qualified second, meaning 1987 was the first time since qualifying times determined grid positions in 1967 that two Bathurst rookies had occupied the front row.
Five European-based drivers qualified for the shootout: Ludwig, Rouse, Steve Soper, Klaus Niedzwiedz, and Johnny Cecotto — a strong indicator of how competitive the international Group A machinery had made the event. Dick Johnson's two Sierras had their shootout times disallowed after the cars failed a fuel check; they had inadvertently used fuel churns filled at the team's Brisbane base rather than at the circuit. The fuel was of inferior grade and actually produced less power, but the penalty was upheld regardless.
Peter Brock failed to qualify for the shootout for the first time, having qualified twelfth overall — outside the top ten cut.
The race ran to 161 laps. Eggenberger Motorsport provisionally won the event with Steve Soper and Pierre Dieudonné first across the line in a Ford Sierra RS500, two laps ahead of their teammates Klaus Ludwig and Klaus Niedzwiedz. Third provisionally was the HDT Racing Holden Commodore VL of Peter McLeod, Peter Brock, and David Parsons.
A protest lodged after the race led to both Eggenberger entries being disqualified for illegally modified front wheel arch guards. The team's final appeal against the ruling was rejected in March 1988, confirming the disqualification. With the two Eggenberger cars removed from the results, the Holden of McLeod, Brock, and Parsons was elevated to the effective race win, and the results were restructured accordingly.
The 1987 James Hardie 1000 is significant within the history of the Bathurst 1000 for several reasons. It was one of only two World Touring Car Championship rounds held in Australia, giving the event a global dimension that attracted top-level European entries and driving talent. The post-race disqualification of the outright winner remains one of the most consequential stewards' decisions in the race's history. The addition of the Caltex Chase also permanently altered the character of the circuit's Conrod Straight section, a change that remains in place to this day. The race highlighted the era's competitive peak for turbocharged Group A machinery, with the Ford Sierra RS500 demonstrating its pace even in the face of regulatory controversy.