diff --git a/src/lang/english.txt b/src/lang/english.txt
index 2857e87b20..117474994d 100644
--- a/src/lang/english.txt
+++ b/src/lang/english.txt
@@ -3675,7 +3675,7 @@ STR_VEHICLE_DETAILS_AIRCRAFT_RENAME                             :{BLACK}Name air
 STR_VEHICLE_INFO_AGE_RUNNING_COST_YR                            :{BLACK}Age: {LTBLUE}{STRING2}{BLACK}   Running Cost: {LTBLUE}{CURRENCY_LONG}/yr
 
 STR_RUNNING                                                     :{LTBLUE}Running
-STR_NEED_REPAIR                                                 :{ORANGE}Train needs repair - max speed reduced to {VELOCITY}
+STR_NEED_REPAIR                                                 :{ORANGE}Vehicle needs repair - max speed reduced to {VELOCITY}
 STR_CURRENT_STATUS                                              :{BLACK}Current status: {STRING3}
 
 # The next two need to stay in this order
diff --git a/src/roadveh.h b/src/roadveh.h
index 8a48c19837..1be48878ea 100644
--- a/src/roadveh.h
+++ b/src/roadveh.h
@@ -97,6 +97,8 @@ struct RoadVehicle FINAL : public GroundVehicle<RoadVehicle, VEH_ROAD> {
 	RoadType roadtype;
 	RoadTypes compatible_roadtypes;
 
+	byte critical_breakdown_count; ///< Counter for the number of critical breakdowns since last service
+
 	/** We don't want GCC to zero our struct! It already is zeroed and has an index! */
 	RoadVehicle() : GroundVehicleBase() {}
 	/** We want to 'destruct' the right class. */
@@ -124,6 +126,8 @@ struct RoadVehicle FINAL : public GroundVehicle<RoadVehicle, VEH_ROAD> {
 	bool IsBus() const;
 
 	int GetCurrentMaxSpeed() const;
+	int GetEffectiveMaxSpeed() const;
+	int GetDisplayEffectiveMaxSpeed() const { return this->GetEffectiveMaxSpeed() / 2; }
 	int UpdateSpeed();
 
 protected: // These functions should not be called outside acceleration code.
diff --git a/src/roadveh_cmd.cpp b/src/roadveh_cmd.cpp
index ab10c43922..f2f705a15f 100644
--- a/src/roadveh_cmd.cpp
+++ b/src/roadveh_cmd.cpp
@@ -430,13 +430,29 @@ void RoadVehicle::UpdateDeltaXY(Direction direction)
 	this->z_extent      = 6;
 }
 
+/**
+ * Calculates the maximum speed of the vehicle, taking into account speed reductions following critical breakdowns
+ * @return Maximum speed of the vehicle.
+ */
+int RoadVehicle::GetEffectiveMaxSpeed() const
+{
+	int max_speed = this->vcache.cached_max_speed;
+
+	for (uint i = 0; i < this->critical_breakdown_count; i++) {
+		max_speed = min(max_speed - (max_speed / 3) + 1, max_speed);
+	}
+
+	/* clamp speed to be no less than lower of 5mph and 1/8 of base speed */
+	return max<uint16>(max_speed, min<uint16>(10, (this->vcache.cached_max_speed + 7) >> 3));
+}
+
 /**
  * Calculates the maximum speed of the vehicle under its current conditions.
  * @return Maximum speed of the vehicle.
  */
 inline int RoadVehicle::GetCurrentMaxSpeed() const
 {
-	int max_speed = this->vcache.cached_max_speed;
+	int max_speed = this->GetEffectiveMaxSpeed();
 
 	/* Limit speed to 50% while reversing, 75% in curves. */
 	for (const RoadVehicle *u = this; u != NULL; u = u->Next()) {
diff --git a/src/roadveh_gui.cpp b/src/roadveh_gui.cpp
index 63e0549582..9e23654b20 100644
--- a/src/roadveh_gui.cpp
+++ b/src/roadveh_gui.cpp
@@ -117,6 +117,11 @@ void DrawRoadVehDetails(const Vehicle *v, int left, int right, int y)
 	/* Draw Transfer credits text */
 	SetDParam(0, feeder_share);
 	DrawString(left, right, y + 3 * FONT_HEIGHT_NORMAL + 3 + y_offset, STR_VEHICLE_INFO_FEEDER_CARGO_VALUE);
+
+	if (RoadVehicle::From(v)->critical_breakdown_count > 0) {
+		SetDParam(0, RoadVehicle::From(v)->GetDisplayEffectiveMaxSpeed());
+		DrawString(left, right, y + 4 * FONT_HEIGHT_NORMAL + 4 + y_offset, STR_NEED_REPAIR);
+	}
 }
 
 /**
diff --git a/src/saveload/extended_ver_sl.cpp b/src/saveload/extended_ver_sl.cpp
index cd9d4ee47c..216bee3e08 100644
--- a/src/saveload/extended_ver_sl.cpp
+++ b/src/saveload/extended_ver_sl.cpp
@@ -45,7 +45,7 @@ std::vector<uint32> _sl_xv_discardable_chunk_ids;           ///< list of chunks
 static const uint32 _sl_xv_slxi_chunk_version = 0;          ///< current version os SLXI chunk
 
 const SlxiSubChunkInfo _sl_xv_sub_chunk_infos[] = {
-	{ XSLFI_IMPROVED_BREAKDOWNS,    XSCF_NULL,                5,   5, "improved_breakdowns",       NULL, NULL, NULL        },
+	{ XSLFI_IMPROVED_BREAKDOWNS,    XSCF_NULL,                6,   6, "improved_breakdowns",       NULL, NULL, NULL        },
 	{ XSLFI_NULL, XSCF_NULL, 0, 0, NULL, NULL, NULL, NULL },// This is the end marker
 };
 
diff --git a/src/saveload/vehicle_sl.cpp b/src/saveload/vehicle_sl.cpp
index 4ffe29772b..7c68e64bc2 100644
--- a/src/saveload/vehicle_sl.cpp
+++ b/src/saveload/vehicle_sl.cpp
@@ -750,6 +750,7 @@ const SaveLoad *GetVehicleDescription(VehicleType vt)
 		SLE_CONDNULL(4,                                                              69, 130),
 		SLE_CONDNULL(2,                                                               6, 130),
 		SLE_CONDNULL(16,                                                              2, 143), // old reserved space
+		SLE_CONDVAR_X(RoadVehicle, critical_breakdown_count, SLE_UINT8,               0, SL_MAX_VERSION, SlXvFeatureTest(XSLFTO_AND, XSLFI_IMPROVED_BREAKDOWNS, 6)),
 
 		     SLE_END()
 	};
diff --git a/src/vehicle.cpp b/src/vehicle.cpp
index 6dcd1af960..4ddcfab2af 100644
--- a/src/vehicle.cpp
+++ b/src/vehicle.cpp
@@ -153,6 +153,8 @@ void VehicleServiceInDepot(Vehicle *v)
 			Train::From(v)->ConsistChanged(CCF_REFIT);
 			CLRBITS(Train::From(v)->flags, (1 << VRF_BREAKDOWN_BRAKING) | VRF_IS_BROKEN );
 		}
+	} else if (v->type == VEH_ROAD) {
+		RoadVehicle::From(v)->critical_breakdown_count = 0;
 	}
 	v->vehstatus &= ~VS_AIRCRAFT_BROKEN;
 	SetWindowDirty(WC_VEHICLE_DETAILS, v->index); // ensure that last service date and reliability are updated
@@ -185,7 +187,8 @@ bool Vehicle::NeedsServicing() const
 	if ((this->ServiceIntervalIsPercent() ?
 			(this->reliability >= this->GetEngine()->reliability * (100 - this->service_interval) / 100) :
 			(this->date_of_last_service + this->service_interval >= _date))
-			&& !(this->type == VEH_TRAIN && HasBit(Train::From(this)->flags, VRF_NEED_REPAIR))) {
+			&& !(this->type == VEH_TRAIN && HasBit(Train::From(this)->flags, VRF_NEED_REPAIR))
+			&& !(this->type == VEH_ROAD && RoadVehicle::From(this)->critical_breakdown_count > 0)) {
 		return false;
 	}
 
@@ -1458,6 +1461,13 @@ bool Vehicle::HandleBreakdown()
 							EffectVehicle *u = CreateEffectVehicleRel(this, 4, 4, 5, EV_BREAKDOWN_SMOKE);
 							if (u != NULL) u->animation_state = this->breakdown_delay * 2;
 						}
+						if (_settings_game.vehicle.improved_breakdowns) {
+							if (this->type == VEH_ROAD) {
+								if (RoadVehicle::From(this)->critical_breakdown_count != 255) {
+									RoadVehicle::From(this)->critical_breakdown_count++;
+								}
+							}
+						}
 					/* FALL THROUGH */
 					case BREAKDOWN_EM_STOP:
 						this->cur_speed = 0;
diff --git a/src/vehicle_gui.cpp b/src/vehicle_gui.cpp
index bb972a7b1b..af10eefbcf 100644
--- a/src/vehicle_gui.cpp
+++ b/src/vehicle_gui.cpp
@@ -1942,13 +1942,13 @@ struct VehicleDetailsWindow : Window {
 		uint desired_height;
 		if (v->HasArticulatedPart()) {
 			/* An articulated RV has its text drawn under the sprite instead of after it, hence 15 pixels extra. */
-			desired_height = WD_FRAMERECT_TOP + ScaleGUITrad(15) + 3 * FONT_HEIGHT_NORMAL + 2 + WD_FRAMERECT_BOTTOM;
+			desired_height = WD_FRAMERECT_TOP + ScaleGUITrad(15) + 4 * FONT_HEIGHT_NORMAL + 3 + WD_FRAMERECT_BOTTOM;
 			/* Add space for the cargo amount for each part. */
 			for (const Vehicle *u = v; u != NULL; u = u->Next()) {
 				if (u->cargo_cap != 0) desired_height += FONT_HEIGHT_NORMAL + 1;
 			}
 		} else {
-			desired_height = WD_FRAMERECT_TOP + 4 * FONT_HEIGHT_NORMAL + 3 + WD_FRAMERECT_BOTTOM;
+			desired_height = WD_FRAMERECT_TOP + 5 * FONT_HEIGHT_NORMAL + 4 + WD_FRAMERECT_BOTTOM;
 		}
 		return desired_height;
 	}