(ANSA) - Termini Imerese, December 14 - Factories, schools and shops shut down here in this Sicilian town near Palermo on Monday in a general strike against Fiat's plans to suspend automobile production at its plant here and convert the facility to other use.

Students and even priests joined with Fiat workers in a march to the town's main square where union leaders spoke out against Fiat's restructuring plans.

"We are here with the families of workers because they are also our families. We share their concern and we support their initiative," said Brother Salvatore Frasca, one of a group of monks and priests attending the demonstration.

The town's chief pastor, Father Francesco Anfuso, addressed the crowd from the main stage and said "we must struggle, we can't give in, let us unite our energies to defend our factory and our jobs".

He then turned his attention to the many students present and added "help us, stand by our sides. You are the Church".

Union sources claimed that some 10,000 took part in the demonstration while police said the number was in the hundreds.

Fiat is set to present the government next week with a revised plan to reorganise its five production centers in Italy which includes ending vehicle production here in 2011 and converting the plant to make other, unspecified products starting the following year.

Industry Minister Claudio Scajola last month said it would be "folly" to close down the Termini Imerese facility but left open the door to its reconversion if production was boosted elsewhere in Italy.

Speaking at Monday's rally, Maurizio Landini of the FIOM union said that if Fiat confirms its plans for the plant here "there will be no further discussion and together with the rank-and-file we will decide what action to take".

Landini then called on the center-right government to not be "ambiguous" and insist that vehicle production continue here.

"We are very concerned about the future of the Fiat plant but we are in no way resigned to its fate," Mayor Salvatore Burrafato told the crowd.

"Fiat cannot close down an industrial facility which has been a reality for over 40 years," he added.

It is generally recognised that it costs Fiat some 1,200 euros more per unit to build automobiles here and Scajola said two weeks ago, after meeting with Fiat CEO Sergio Marchionne, that ''we will have to see whether automobiles will be in Termini Imerese's future but it is our firm conviction that it must remain an efficient industrial center''. The government said it is ready to help Fiat but wants it to produce some 900,000 vehicles a year in Italy, compared to the some 650,000 it currently makes.

Sales for the Fiat group, which also includes Lancia and Alfa Romeo, sank almost 12% last year to some 688,000 from over 780,000 in 2007.

Fiat also produces light commercial vehicles, buses, trucks, farm and earth-moving equipment.

The general consensus is that both Termini Imerese and Pomigliano d'Arco near Naples, which is also expected to be reconverted, would have been shut down had Fiat succeeded in acquiring Germany's Opel from General Motors earlier this year.

CHINESE DENY INTEREST IN TERMINI IMERESE.

In a related development, Chinese automaker Chery denied press reports on Monday that it had any interest in acquiring Fiat's plant in Sicily.

The Rome daily La Repubblica wrote that Chery was interested in the plant and was even ready to double its production capacity to reduce the cost per unit, the main reason why Fiat has decided to end automobile production there.

In a statement issued on Monday, Chery Chairman Yin Tongye said he had only heard of his company's interest in the plant ''from the press''. He did, however, confirm that Chery intended to build or buy 15 factories abroad. Founded in 1997, Chery has become China's leading producer of automobiles. Last March a joint venture with Fiat to build cars in China with Italian engines fell through due to problems related to the global economic downturn. Before Chery denied its interest in Termini Imerese, Scajola said ''our interest is to boost car production in Italy.

We would like to do this with Fiat but the door is open to anyone who wants to come''.