<PAGE>

                                                                  EXHIBIT 10.42

                                                                EXECUTION COPY

                               ALTERNATE CURRENCY ANNEX

                                     ITALIAN LIRE


     This Alternate Currency Annex (the "ANNEX") is entered into as of May 
29, 1997 by and among R. J. Tower Corporation, a Michigan corporation (the 
"COMPANY"), Tower Italia S.r.l. ("TOWER ITALIA") and Interfin S.p.A. 
("INTERFIN"), as Alternate Currency Borrowers with respect to Italian Lire 
(Tower Italia and Interfin each being a "LIRE BORROWER"), Istituto Bancario 
San Paolo di Torino S.p.A., Torino Main Branch, as the Alternate Currency 
Lender with respect to Italian Lire (the "LIRE LENDER"), and Bank of America 
National Trust and Savings Association, as Agent (in such capacity, the 
"AGENT") under the Credit Agreement dated as of April 18, 1997 (as amended, 
supplemented, amended and restated or otherwise modified from time to time, 
the "CREDIT AGREEMENT") by and among the Company, the various financial 
institutions from time to time party thereto, and the Agent.  Capitalized 
terms not defined herein shall have the meanings specified in the Credit 
Agreement.

     WHEREAS, the Company desires that Alternate Currency Loans be made in 
Italian Lire to each Lire Borrower;

     WHEREAS, the Required Lenders have accepted the Company's request that 
Alternate Currency Loans be made in Italian Lire to each Lire Borrower; and

     WHEREAS, the Lire Lender is willing to make Alternate Currency Loans in 
Italian Lire to each Lire Borrower; and

     WHEREAS, each Lire Borrower desires to become bound by and subject to 
the provisions of the Credit Agreement as an Alternate Currency Borrower with 
respect to Italian Lire;

     NOW THEREFORE, in consideration of the foregoing, and for the covenants 
and agreements contained herein and in the Credit Agreement, the parties 
hereto hereby agree as follows:

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     1.     This Annex shall be an Alternate Currency Annex with respect to 
Alternate Currency Loans in Italian Lire pursuant to Section 2.17 of the 
Credit Agreement.

     2.     The Alternate Currency Sublimit with respect to Alternate 
Currency Loans in Italian Lire shall be $60,000,000.

     3.     The Alternate Currency Commitment Termination Date with respect 
to Alternate Currency Loans in Italian Lire shall be November 27, 1998.

     4.     The Company (i) represents and warrants that each Lire Borrower 
is a Supermajority-Owned Subsidiary of the Company, (ii) confirms that all of 
its obligations under the Credit Agreement are, and upon each Lire Borrower 
becoming an Alternate Currency Borrower with respect to Italian Lire shall 
continue to be, in full force and effect, and (iii) confirms that upon each 
Lire Borrower becoming an Alternate Currency Borrower with respect to Italian 
Lire, the term "Obligations," as used in the Credit Agreement, shall include 
all Obligations of such Alternate Currency Borrower under the Credit 
Agreement and the other Credit Documents.

     5.     Each Lire Borrower (i) represents and warrants that all the 
representations and warranties set forth in Article V of the Credit Agreement 
are true and correct to the extent applicable to it, (ii) acknowledges and 
confirms that it has received a copy of the Credit Agreement and the 
Schedules and Exhibits thereto, and (iii) hereby agrees by its signature 
hereunder to be bound by the provisions of the Credit Agreement applicable to 
Alternate Currency Borrowers to the same extent as if it had been a direct 
signatory thereto.

     6.     The Agent hereby designates the Lire Lender as the Alternate 
Currency Lender with respect to Italian Lire, and the Lire Lender hereby 
accepts such designation and all of its rights and obligations as such under 
the Credit Agreement and this Annex.  The Lire Lender's Lending Office shall 
be its Torino Main Branch.

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     7.     Additional terms and provisions with respect to the Alternate 
Currency Loans in Italian Lire are set forth in Schedule 1 hereto.  

     8.     In the event of a conflict between this Annex and the Credit 
Agreement, the terms and provisions of this Annex shall control. 

     9.     The obligation of the Lire Lender to make Alternate Currency 
Loans in Italian Lire pursuant to the Credit Agreement and this Annex is 
subject to the condition that the Agent and the Lire Lender shall have 
received on or before the date hereof all of the following in form and 
substance reasonably satisfactory to the Agent and the Lire Lender:

     (a)    ANNEX.  This Annex executed by each party thereto;      

     (b)    RESOLUTIONS; INCUMBENCY.    (i) Copies of resolutions of the sole 
     director of each Lire Borrower authorizing the execution and delivery of 
     this Annex and the other transactions contemplated hereby, certified as 
     of the date hereof by the sole director of such Lire Borrower;

            (ii)   A certificate of the sole director of each Lire Borrower 
     certifying as to the name, true signature and fiscal code ("codice 
     fiscale") of such sole director;

     (c)    ORGANIZATIONAL DOCUMENTS; GOOD STANDING.  Each of the following 
documents:

            (i)    the articles of incorporation ("Atto Costitutivo") of each 
     Lire Borrower as in effect on the date hereof, duly authorized and 
     confirmed by all necessary Governmental Authorities and certified by the 
     sole director of such Lire Borrower as of the date hereof;

            (ii)   the bylaws ("Statuto") of each Lire Borrower as in effect 
     on the date hereof, duly authorized and confirmed by all necessary 
     Governmental Authorities and certified by the sole director of such Lire 
     Borrower as of the date hereof;

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            (iii)  a good standing certificate with VAT tax code 
     ("Certificato della Camera di Commercio con codice IVA") for Interfin 
     from the applicable Italian Governmental Authority as of a recent date;

            (iv)   a certificate of the Court of Rome as of a recent date 
     evidencing that Tower Italia is not subject to any Insolvency 
     Proceeding; and

            (v)    a certificate of an Italian public notary as of the date 
     hereof as to the formation of Tower Italia;

     (d)    ITALIAN ACQUISITION.  Evidence that the Italian Acquisition has 
been consummated and is binding upon each of the Lire Borrowers;

     (e)    OPINIONS.     (i)  An opinion of Italian counsel to each Lire 
     Borrower in substantially the form of Exhibit A-1 hereto; and

            (ii)  An opinion of New York counsel to each Lire Borrower in 
     substantially the form of Exhibit A-2 hereto; and

     (f)    OTHER DOCUMENTS.  Such other approvals, opinions, documents or 
materials as the Agent or the Lire Lender may reasonably request.

     10.    ASSIGNMENTS BY LENDERS.  The Lire Lender hereby agrees that its 
consent is not required in connection with any assignment or delegation by a 
Lender of its Assignable Credit Exposure pursuant to Section 10.8 of the 
Credit Agreement to an Eligible Assignee that is an Affiliate of such Lender 
or to an Existing Lender.

     11.    CONSENTS WITH RESPECT TO MERGERS INVOLVING THE LIRE BORROWERS.  
In the event that any or all of the Lire Borrowers elect to merge or 
consolidate with or into each other or other Persons and as a result, the 
Lire Lender is requested to provide consent or otherwise take any action with 
respect to such merger or consolidation pursuant to Italian Requirements of 
Law, (i) the Lire Lender shall promptly provide the Agent with such request 

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and such other information regarding such merger or consolidation and such 
request as the Agent may reasonably request, and (ii) the Lire Lender shall 
not give any such consent or take any such action unless it has been directed 
to do so in writing by the Agent.

     12.    GOVERNING LAW.  This Annex shall be governed by, and construed in 
accordance with, the laws of the State of New York, without regard to 
conflict of law principles.

                                    *  *  *  *  *




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     IN WITNESS WHEREOF, the parties hereto have caused this Alternate 
Currency Annex to be executed and delivered as of the date first above 
written.

                                        R. J. TOWER CORPORATION,
                                        a Michigan corporation


                                        By:  /s/ Carl E. Nelson
                                            -------------------------
                                        Name:  Carl E. Nelson
                                              -----------------------
                                        Title: Assistant Secretary
                                               ----------------------


                                        TOWER ITALIA S.R.L.


                                        By:  /s/ Carl E. Nelson
                                            -------------------------
                                        Name:  Carl E. Nelson
                                              -----------------------
                                        Title: Assistant Secretary
                                               ----------------------

                                        INTERFIN S.P.A.


                                        By:   /s/ Carl E. Nelson
                                            -------------------------
                                        Name:  Carl E. Nelson
                                              -----------------------
                                        Title: Assistant Secretary
                                               ----------------------


                                        BANK OF AMERICA NATIONAL TRUST
                                        AND SAVINGS ASSOCIATION, 
                                        as Agent


                                        By:  /s/ Lynn Stetson
                                            -------------------------
                                        Name:  Lynn Stetson
                                              -----------------------
                                        Title: Managing Director
                                               ----------------------


                                        ISTITUTO BANCARIO SAN PAOLO DI
                                        TORINO S.P.A., TORINO MAIN BRANCH

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                                        By:  /s/ Mr. Alini
                                            -------------------------
                                        Name:  Mr. Alini
                                              -----------------------
                                        Title:
                                               ----------------------





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                                                                     Schedule 1

                               ALTERNATE PROCEDURES

                     ALTERNATE CURRENCY LOANS IN ITALIAN LIRE


1.   REQUEST FOR ALTERNATE CURRENCY LOANS  (Section 2.17(a)).

     To request an Alternate Currency Loan denominated in Italian Lire, a 
     Lire Borrower shall notify the Lire Lender at its Torino Main Branch, 
     not later than 11:00 a.m., Torino time, three Business Days before the 
     date of the proposed Borrowing.   The Torino Main Branch of the Lire 
     Lender shall send to the Agent a copy of such notice via facsimile not 
     later than 3:00 p.m., Torino time, three Business Days before the date 
     of the proposed Borrowing.

2.   FUNDING OF BORROWING  (Section 2.17(b)).

     The Agent shall notify the Lire Lender via facsimile not later than 
     10:00 a.m., Torino time, two Business Days before the date of the 
     proposed Borrowing, as to whether the requested Alternate Currency Loan 
     should be made.  Upon receipt from the Agent of confirmation to the 
     effect that the requested Alternate Currency Loan should be made, the 
     Lire Lender shall make each Alternate Currency Loan in Italian Lire on 
     the proposed date thereof by wire transfer of such immediately available 
     funds by 11:00 a.m., Torino time, to an account located in Italy which 
     has been specified for such purpose by the relevant Lire Borrower.

3.   PREPAYMENT OF LOANS  (Section 2.17(d)).

     The applicable Lire Borrower shall notify the Lire Lender at its Torino 
     Main Branch via facsimile of any prepayment of an Alternate Currency 
     Loan denominated in Italian Lire not later than 11:00 a.m., Torino time, 
     three Business Days before the date of prepayment.  The Torino Main 
     Branch of the Lire Lender shall send to the Agent a copy of such notice. 
     Any funding breakage costs related to any such 

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     prepayment shall be payable by the relevant Lire Borrower pursuant to 
     the Credit Agreement.

4.   INTEREST  (Section 2.17(c)).

     Each Alternate Currency Loan denominated in Italian Lire shall bear 
     interest at a rate per annum equal to 30 basis points above the 
     interbank offered rate for Italian Lire in Torino for the period in 
     effect for such Alternate Currency Loan.  Interest on each such 
     Alternate Currency Loan shall be payable at the end of the applicable 
     period and, if such period is longer than three months, at the end of 
     each calendar quarter.

5.   FEES.  (Section 2.10(c))

     The Company shall remit to the Lire Lender at its Torino Main Branch a 
     fee in respect of the ability of the Lire Borrowers to borrow Alternate 
     Currency Loans in Italian Lire payable as of the date hereof and on each 
     annual anniversary of the date hereof in an amount equal to $45,000.

6.   PAYMENTS GENERALLY  (Section 2.17(d)).

     Each Lire Borrower that borrows an Alternate Currency Loan in Italian 
     Lire shall make all payments required with respect to such Alternate 
     Currency Loans (whether of principal, interest or fees) from a payment 
     location in Italy prior to 11:00 a.m., Torino time, on the date when 
     due, in immediately available funds, without set-off or counterclaim.  
     All such payments shall be made in Italian Lire to the Lire Lender at 
     its Torino Main Branch at the following address:

            Istituto Bancario San Paolo di Torino S.p.A.
            Piazza San Carlo 156
            10121 Torino
            Branch Number 700 PSC
            Italia
            Attention:  Mr. Alini
            Telephone:  39-11-555-2174
            Facsimile:  39-11-555-6612

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     The Lire Lender shall give the Agent prompt notice of all such payments.

7.   NOTICES  (Section 2.17(b)).

     In connection with Alternate Currency Loans denominated in Italian Lire, 
     notices shall be sent to the Lire Lender at its Torino Main Branch at 
     the following address: 

            Istituto Bancario San Paolo di Torino S.p.A.
            Piazza San Carlo 156
            10121 Torino
            Branch Number 700 PSC
            Italia
            Attention:  Mr. Alini
            Telephone:  39-11-555-2174
            Facsimile:  39-11-555-6612


     or such other address as the Lire Lender shall designate to the Company, 
     the Lire Borrowers and the Agent.  The Torino Main Branch of the Lire 
     Lender shall send to the Agent a copy of any such notices.

8.   RECORDKEEPING; ADVICE TO LENDERS

     The Agent shall be responsible for maintaining a record of the Alternate 
     Currency Loans denominated in Italian Lire made from time to time and 
     all payments made with respect thereto, whether for interest, fees or 
     principal payments.  The Agent shall also be responsible for advising 
     all Lenders on a timely basis of their contingent obligations with 
     respect to any outstanding Alternate Currency Loans denominated in 
     Italian Lire.



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