The early sixties successes of Carroll Shelby’s AC-based Cobras in road racing did not go unnoticed by others. A 1957 Automobile Manufacturers Association ban on direct involvement in racing had kept manufacturers like Ford and Chevrolet from fielding factory-backed racing teams. That didn’t mean, by any stretch of the imagination, that they ignored the sport.

CSX 3259 will go to auction shortly a the RM Auctions’ upcoming Arizona event, January 21, 2011. An annual feature at the Arizona Biltmore Resort & Spa in Phoenix, the 12th edition of the event may see this 1966 Shelby 427 Cobra sell in the three-quarter million dollar range. For additional information, please see the event web site.

Shortly after its 1962 introduction, Shelby had upgraded the Cobra to the 260 hp ‘Rally’ V8 engine. Mated to a Borg Warner 4-speed manual transmission, the two seat roadster quickly became known as a Corvette-killer.

However, Corvette chief engineer, Zora Arkus-Duntov had been working on a secret project with the approval of Chevrolet president, Bunkie Knusdon, to take on the Cobras at their own game. After a first successful testing at Sebring in December, 1962, news of Duntov’s “Grand Sport” Corvette reached the executive offices of GM and the project was ordered stopped.

Five prototype cars had been built and continued to be used by “private” racers that year. Texan John Mecum arranged for three cars to be shipped to Nassau in December, 1963 for the annual Speed Week there. Inexplicably, a number of Chevrolet engineers had previously booked vacations in the Bahamas for that same time. Reportedly, their luggage contained more than just swimming suits and sun tan lotion.

The Corvette Grand Sport used a new, 377 cid small block, topped by four 58mm Weber carbs on a special aluminum cross-ram manifold. The engine was rumored to produce 485 horsepower at 6000 rpm. Much more had been done to the prototypes over the previous 12 months, with a priority emphasis on weight reduction, and in the end, they were more than nine seconds per lap faster than the Cobras that Shelby had brought.

In the Shelby camp, test driver Ken Miles, had been campaigning to build a more powerful Cobra and, if any remaining justification were needed, the Shelby team returned from Nassau with it. Discussions with Ford had earlier centered on an aluminum version of the 390 cid V8, but in the end, Shelby had to make do with the heavier 427 side-oiler V8. Miles led the requisite development of the Cobra chassis to handle the significantly bigger and heavier engine.

The chassis was widened by five inches and many components were strengthened. Miles’ efforts would result in a modern legend, with more than three hundred 427 Cobras being built by the Shelby organization. Unfortunately, he would never live to see this milestone. Miles was killed in an accident in August of 1966 at Riverside International Raceway.

The particular car shown here, CSX 3259, is – for some – a highly valued example because of its well-known, ‘no-stories’ history. CSX 3259 was first sold by Hickey Ford of Royal Oak, MI, for $6,275 on June 30, 1966. The car’s subsequent history, including a number of European owners, is well documented.

Following its return to the USA and a ‘racing incident’ at the 2003 Monterey Historics, the car has undergone a spare-no-cost restoration that considered not only the concours appearance of the Cobra, but its competition readiness as well.