It was called the Nova project, V4 watercooled, rad was under the seat as I recall, sorta have to judge it's looks by the time it was in, around 79 or 80 I think it was, the motor was awesome for it's time, but money was tight and it came down to the V4 or the Evo and well you know the history from that point. Would have been a bitching motor though!
You're correct. It was a project Harley and Porsche were working on.
You are looking at a bike that was designed over thirty years ago. The prototype is from 81 but the design started in the mid 70s. If you compare it to the metrics at that time it is much cleaner and more advanced. The body work looks designed rather than bolted on like other brand touring bikes of the time. I have seen this in the museum and even though I am a air cooled guy it sure would have shut up all those metric folks that claim Harleys are out dated. Looks to me like they could have kicked metric a** 28 years ago if they had wanted to go that direction. They also had a six cylinder version of the motor designed, that is in the museum also. In the engine room you can hear the sound of the motor. You can see where a lot of this carried over into the FXRT.