Reliable estimation of vehicle speed is an active topic of research in the automotive industry and academia due to its technical challenges as well as applications to vehicle traction and stability control. In this direction, the emergence of new generations of communication technologies has brought new perspectives to traditional studies on vehicle speed estimation and control. To this end, this paper introduces a cooperative vehicle speed fault diagnosis and correction algorithm. The distributed part of the algorithm is based on a distributed function calculation algorithm for vehicle networks. The introduced algorithm enables each vehicle to gather some information from other vehicles in the network in a distributed manner and is robust to communication failures. A procedure to use such information for a single vehicle to diagnose and correct a possible fault in its own speed estimation/measurement is discussed. The functionality and performance of the proposed algorithms are verified via illustrative examples and simulation results.