This paper is concerned with the problem of distributed joint state and sensor fault estimation for autonomous ground vehicles subject to unknown-but-bounded (UBB) external disturbance and measurement noise. In order to improve the estimation reliability and performance in cases of poor data collection and potential communication interruption, a multi-sensor network configuration is presented to cooperatively measure the vehicular yaw rate, and further compute local state and fault estimates. Toward this aim, an augmented descriptor vehicle model is first established, where the unknown sensor fault is modeled as an auxiliary state of the system model. Then, a new distributed ellipsoidal set-membership estimation approach is developed so as to construct an optimized bounding ellipsoidal set which guarantees to contain the vehicle's true state and the sensor fault at each time step despite the existence of UBB disturbance and measurement noises. Furthermore, a convex optimization algorithm is put forward such that the gain matrix of each distributed estimator can be recursively obtained. Finally, simulation results are provided to validate the effectiveness of the proposed approach.