Labbadia put pen to paper on a deal which runs until 2015, and while his long-term aims are to lead the club into Europe again, his immediate concern is halting that poor run of form in the North-Rhine Westphalian capital on Saturday.
"It's a challenge, but one that I am attracted by," said Labbadia.
"I am really motivated and we want to build a hungry team.
"I can see the potential of the club and the chance that we can push this club even further forward.
"Something is growing here in Stuttgart and of course I am delighted to be able to see it grow as coach.
"We lost the first two games of the year unnecessarily and we could have got more out of them.
"We are aiming to eradicate these ups and downs. IT may take a while, but we will be more successful in the long run."
Fortuna have also made a poor start to the new year with back-to-back defeats and they have made five new signings in a bid to halt their slide back down the table.
"Mathis Bolly is a fast lad, but he is injured so I can't pick him yet," said coach Norbert Meier to the Westdeutsche Zeitung newspaper.
"Martin Latka was thrown in at the deep end against Gladbach and he had a decent game, as did Robert Tesche.
"Genki Omae still needs time to adapt while Stelios Malezas is making progress."