By Alison Leung

HONG KONG (Reuters) - Brilliance China Automotive Holdings Ltd, BMW's partner in the country, has signed a preliminary agreement with two U.S. billionaires aimed at beginning exports of low-cost sedans to the United States in 2009.

Brilliance, becoming the latest Chinese firm to unveil plans to enter the world's biggest auto market, has signed a distribution agreement with Rocket Capital Investment Group -- a vehicle of Houston Rockets owner Les Alexander -- and Red McCombs Automotive, executives said.

As part of the preliminary pact, Rocket Capital and magnate McCombs -- a founder of Clear Channel Communications (CCU.N: Quote, Profile, Research) as well as Texas' largest auto dealership -- will pay about $100 million to buy 10 to 15 percent of Brilliance (BCAHY.PK: Quote, Profile, Research), Chairman Wu Xiaoan said on Monday.

Brilliance intends to join a coterie of ambitious Chinese players, including Geely Auto and Chery, keen on selling cheap vehicles in the United States and Europe, to escape fierce competition at home while establishing a global presence.

Analysts say car giants from General Motors (GM.N: Quote, Profile, Research) to Toyota Motor Corp (7203.T: Quote, Profile, Research) fear cheaper Chinese-made automobiles will flood the globe in coming years and grab market share.

But many Chinese firms have run into delays breaking into the highly competitive U.S. market because of perceptions of low quality.

"It's the world's largest market so Chinese automakers will certainly have to sell to the U.S. The process will be difficult but we've no fear. Everything's difficult in the beginning," Wu told reporters in Hong Kong.

For more details on the proposed alliance, please click here 80310117.pdf