Favre replaces Frontzeck at Moenchengladbach
Swiss Favre took over on Monday after the sacking of Michael Frontzeck with a contract running to 2013 that also commits him to staying at the club if they get relegated.
"I am convinced that we still have a chance to stay up," the 53-year-old told reporters during his official presentation. "There is very little time left so we have to be precise and correct things quickly."
Gladbach, who suffered a 3-1 defeat by St Pauli on Saturday, are bottom on 16 points from 22 games. They also have the worst defence in the league having conceded 56 goals.
There are 12 games left in the season.
Favre, who coached FC Zurich to two Swiss titles, already has Bundesliga experience after steering Hertha Berlin to a fourth-place finish in 2009 in his most recent training job.
He was sacked early in the 2009/10 season before Hertha were relegated.