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Accurate positioning is a key factor for enabling innovative applications in intelligent transportation systems. Cutting-edge communication technologies make cooperative localization a promising approach for accurate vehicle positioning. In this paper, we first propose a ranging technique called weighted least squares double difference (WLS-DD), which is used to detect intervehicle distances based on the sharing of GPS pseudorange measurements and a weighted least squares method. It takes the carrier-to-noise ratio (CNR) of raw pseudorange measurements into consideration for mitigating noises so that it can improve the accuracy of the distance detection. We show the superiority of WLS-DD by conducting a series of field experiments. Based on intervehicle distance detection, we propose a distributed location estimate algorithm (DLEA) to improve the accuracy of vehicle positioning. The implementation of DLEA only relies on inaccurate GPS pseudorange measurements and the obtained intervehicle distances without using any reference points for positioning correction. Moreover, to evaluate the joint effect of WLS-DD and DLEA, we derive a data fitting model based on the observed distance detection bias from field experiments, which generates parameters in a variety of environments for performance evaluation. Finally, we demonstrate the effectiveness of the proposed solutions via a comprehensive simulation study.