General Motors Corp and Chrysler plan to shed as many as 3,000 U.S. dealers, Reuters reported.

Chrysler will disclose Wednesday which dealers it intends to retain, according to court documents and GM is expected to notify its dealers on Thursday which ones it will retain and which ones it will not.

The dealers in the urban areas where the number of auto retailers is greater are expected to suffer the most.

GM, facing a U.S. government-imposed deadline of June 1 to restructure or file for bankruptcy, is expected to send termination notices to up to 2,000 dealers -- a third of its roughly 6,000 U.S. dealers, the sources told Reuters.

Chrysler, which filed for bankruptcy on April 30, will also tell up to 1,000 of its 3,189 U.S. dealers that it is terminating their franchise agreements, according to the sources who asked not to be identified because the controversial closure plans have not been yet announced, Reuters reported.