CHICAGO (AP) — President Barack Obama declared yesterday that the US auto industry is not just rebounding from its problems but on its way to being No. 1 in the world again.

His rousing pep talk to Ford factory workers came before he headed into a night of high-dollar fundraising for the Democratic Party.

The President celebrated that the big three American automakers — GM, Chrysler and Ford — were all operating at a profit again. He described a remarkable turnaround for the car companies in an industry on the brink of collapse when he took office, thanks to federal taxpayer help and industry adaptation.

While Ford did not need to accept federal bailout funds like the other two companies, Obama said Ford still benefited because the government intervention helped prevent the loss of jobs and brand confidence throughout the entire auto supply chain. He spoke from a Ford plant in Chicago that is poised to add 1,200 jobs.

"I am convinced that we're going to rebuild not only the auto industry but the economy better and stronger before," Obama said. "And at it's heart is going to be three powerful words: Made in America."

The White House says Ford's expansion is possible in part because of $400 million in new Energy Department loan guarantees for companies that redesign their plants to make more fuel-efficient vehicles. By the end of the year, the plant will begin cranking out a redesigned, energy-efficient 2011 Explorer SUV that the company hopes to sell in more than 90 countries.

Obama also announced a $250 million export-import bank loan guarantee for Ford to help export its auto overseas. "We're tired of just buying from everybody else," Obama said. "We want to start selling."