Kirk Kerkorian's consultant, Jerome York, has gained a seat on the General Motors' board of directors, filling a vacancy created by the resignation of Merrill Lynch CEO Stanley O'Neal. Now, the big question is: will York make a difference?

Some commentators are wondering whether York can make allies on a board that has stood firmly behind CEO Rick Wagoner, but even if York becomes part of the team, will the firm's strategy change? York has been pushing GM to reduce its dividend, sell off divisions, and reduce executive salaries. In December I expressed skepticism concerning York's ability to make a difference at GM, primarily because the company is hamstrung by labor contracts and long production cycles. I am still a skeptic.

UPDATE: As expected, GM took the steps championed by York, halving its dividend, cutting executive salaries, and promising to evaluate ways to restructure its pension liabilities. The first two moves are fairly obvious steps to take at a failing firm. The last step will be harder, and the ultimate issue remains: whether any of this will save the firm.

Larry Ribstein has some more thoughts on managing GM.

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