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It was really more of a way to get people to drive more and so have to buy more tires (hopefully Michelin)
The original guide had things like maps, tire shops, gas stations, and tire repair instructions. Back then, cars were still new to a lot of people, and Michelin figured that a lot of people probably wouldn't know where they could go get gas or new tires or whatever, but if they had that information people might be inclined to drive more. If you didn't know where you could get gas along your trip you may not want to take that drive after all.
Then after a while they started including things like restaurants to give people more of a reason to go driving around.
It's advertising. If you make it into the guide, more people are going to hear about and want to come to your restaurant. And since the guide has such a good reputation, it's seen as a badge of honor that this restaurant/chef is good enough to be recognized with a star.
No, they were renowned tire manufacturers. But they were French and that probably didn't hurt the branding since French food has such a good reputation. I'm sure subconsciously on some level a lot of people are going to give a bit more weight to a French company rating restaurants than, for example, an American one.
Why bother when Michelin was already doing it? You don't need to buy Michelin tires to eat at a Michelin-Stared restaurant. Regardless of where the guide came from it got people driving around more and needing new tires.
There's other travel guides out there, some focus more on other things besides restaurants, some focus on areas not covered by Michelin, some overlap or compete with Michelin or position themselves as sort of an anti-Michelin because they disagree with the criteria Michelin rates restaurants on.
And I'm sure some of them are or have been in the past published or sponsored by tire companies. But Michelin managed to get into the game early enough and did it well enough that they just became sort of the restaurant guide.
And other tire companies have taken other advertising routes that are maybe a little less obvious. Let's consider the Goodyear blimp flying over sporting events. I'm sure there's a small element of "you should drive to sporting events to see our blimp ~and also wear down your tires a bit in the process~" at play there.
Yes it's still the Michelin tire company. I don't have any real insight into their corporate affairs, so I don't know how much crosstalk there is between the tire-manufacturing and the guide-writing parts of their business these days, but it is still the same company.