The road looked pretty straight, so all I can think is that the driver of that car didn't look far enough ahead before he tried to pass, or was trying to pass more than one car and ran out of distance. Don't they say that's one of the most common mistakes drivers make... underestimating the rate of approach?
Regardless, it's a good thing the car was willing to take the shoulder, and that the rider had the presence of mind to just hold his line and not overreact. Not sure I would have reacted as wisely in that situation.