DETROIT, July 30 (UPI) -- U.S. President Barack Obama Friday said helping the auto industry was the right thing to do and that belief has been "vindicated."

Obama traveled to Detroit and sat in a new Jeep Cherokee before addressing Chrysler workers Chrysler Jefferson North Assembly Plant.

"I believed that if each of us were willing to work and sacrifice in the short term -- workers, management, creditors, shareholders, retirees, communities -- it could mark a new beginning for a great American industry," Obama said. "And if we could summon that sense of teamwork and common purpose, we could once again see the best cars in the world designed, engineered, forged, and built right here in Detroit, right here in the Midwest, right here in the United States of America."

"So I placed that faith in you and all of America's autoworkers, and you've vindicated that belief."

Obama talked about the economy in general and noted that it is again growing, albeit slowly.

"But we've got to keep on increasing that rate of growth and keep adding jobs so we can keep moving forward," he said. "And that's especially important for places like this."

He recalled that a year ago Chrysler and GM were on the brink of liquidation and the federal government stepped in with an infusion of cash provided the companies took the "tough and painful step" they needed to become more competitive.

"What we said was," Obama said, "if you're willing to pull together workers, management, suppliers, dealers, everybody to remake yourself for changing times, then we'll stand by you and we'll invest in your future."

Obama said he wasn't surprised by the skepticism at the time because the decision was tough and impolitic.

But 12 months later the industry is growing, creating jobs and manufacturing fuel-efficient vehicles.

"You are proving the nay-sayers wrong, all of you," Obama told an applauding crowd.

At the GM auto plant in nearby Hamtramck, Obama told a plant worker he got the chance to drive an electric Chevy Volt "for about 12 inches" and later signed the hood of a Volt.

His remarks at the GM plant echoed those at the Chrysler facility, but he also said cars of the future were being produced "right here at this plant, producing cars that are going to reduce our dependence on foreign oil."

Several workers at the Chrysler plant credited the federal intervention for saving the facility and their jobs.

"If I was close enough to say thank you to Mr. President that's exactly how I'd convey it," said Wanda Carlisle, who checks studs and sealants and has worked at the plant 16 years. "I need my job. Thank you so much for saving our plant. We needed this, to keep the city going, the state in general."

John Berna Sr., another 16-year employee at the plant, said the bailout "definitely helped" keep the plant open and that Obama "wants to bring a lot more manufacturing jobs to us."