Kerkorian aide elected to GM board

DETROIT — An aide to billionaire investor Kirk Kerkorian was elected Monday to General Motors Corp.’s board of directors, where he is expected to call for tough measures to return the company to profitability, including halving GM’s dividend, cutting executive pay and selling the Saab brand.

Jerome York was elected during a board meeting, and his tenure begins Tuesday. He will serve on the board’s public policy and investment funds committees.

“Jerry brings years of business experience and knowledge of the automotive industry to the GM board,” GM Chairman and Chief Executive Rick Wagoner said in a statement.

York is a consultant to Tracinda Corp., Kerkorian’s private equity firm. Tracinda owns 9.9 percent of GM’s common stock and is GM’s third-largest shareholder.

“We are pleased Jerry has been added to the board of General Motors and believe he will be a tremendous asset to GM as it works to strengthen its business and create long-term value for all shareholders,” Tracinda said in a statement.

York is a 30-year veteran of the auto industry who has held positions at GM, Ford Motor Co. and DaimlerChrysler AG’s Chrysler Group. He spent 14 of those years at Chrysler, where he served as executive vice president and chief financial officer from 1990 to 1993 and as a director from 1992 to 1993. York also served as senior vice president and chief financial officer of IBM Corp. from 1993 to 1995, and as vice chairman of Tracinda from 1995 to 1999.

In a note to investors Monday, Deutsche Bank analyst Michael Heifler said it would be a positive for GM if York joined the board. But he remains pessimistic about the company’s ability to win concessions from the United Auto Workers and its hopes of selling its finance arm, General Motors Acceptance Corp. GM wants to sell a controlling share in GMAC to restore the division’s investment-grade rating.