The Swede, who managed Toyota's European motorsport arm for over 30 years, is believed to have been involved in a head-on collision with a truck during the Milligan classic rally.
Andersson oversaw Toyota's Formula One programme when the Japanese manufacturer made its grand prix racing debut in 2002.
He left his role as team principal in 2003, becoming an advisor to the team.
Andersson was 70.
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