As for the topic, this is a stupid decision. As with most of VW's problems, they only have themselves to blame here.
The Golf doesn't sell for 2 reasons- there's almost never incentives- they lease like crap; and they have constantly decontented thim and slashed trim models.
Point one- A standard Golf lease with no money down or lease specials will run almost $400 a month after taxes. I've seen it too many times. Know what a Civic or Corolla with the same terms will lease for? $275-300. For what is such a cost conscious and frugal market, you can't compete if your car is $100-150 more a month to own.
Point two- When they had a full a model spread, and were doing models like the Special Edition in 2016, they had fair amount of demand. But ever since the Mk7 came out, they have taken away equipment/features every year, cancelled trims, and generally made the car look worse, and a worse value.
If they sold a Wolfsburg model with a bit more power (not GTI levels), some nicer equipment, and a better appearance, it'd have sold. Or an R Line model like other markets get. They should have made AWD an option. There's plenty they could have done.
What's really stupid is that they are doing this at a time when numerous other brands are finding a business case for hatchbacks, and they are so established already. On top of that, they aren't bringing the the I.D. Hatchback here, so there is no replacement, they have no sub-Golf hatchbacks that could capture those buyers, and a compact crossover for the American market is still realistically 2 years away.
They can try to spin this however they want with sales trends, skewed data, market monitoring; or like everything else, blame it on Millenials all they want, but in the end, this is a textbook example of a self-fulfilling prophecy. VW can thank themselves, and only themselves for the Golf's performance in our market.