Make sure your latch release handle is returning fully. I mean the part you squeeze to open the hatch. They're infamous for getting quite corroded in the pot metal pivot up inside the hatch.

Push it fully forward, then cycle the power locks again. Better if you can have someone else cycle locks, and keep your hand on the hatch to feel if it clicks. Should make a substantial thunk.

Did that work? If not, maybe wiring to the power lock has died. Does your key turn the lock? I assume you have a functional lock- try again pushing the latch handle to fully release it, and then manually lock / unlock the hatch.

Can you climb into the back and pull the inside handle? If it doesn't work, maybe something's jammed in the lower striker, or the "child safety" switch on the lock is flipped. I don't remember if they had the child feature back in 86 but our 90 has it.

Ripping off the hatch panel and latch trim is the next step- hope you don't have to go there but it's replaceable if you do.

--Rob
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89 244GL Turbo // 92 244 M47 \\ 90 745T // 76 242 Convertible